factors influencing behavioral reaction of corn farmers to mitigate production risks in kermanshah township region constituted the main purpose followed in this descriptive-correlational study. the study population was comprised of corn farmers of kermanshah township who cultivated corn during the farming year 2009-2010 (n= 3239).a sample of 340 farmers was selected through systematic random sa...

This paper introduces a new method for modeling risk averse behavior with spectral risk measures. It is shown that recent approaches, using phenomenological correspondences or results from robust statistics, generally do not generate consistent results. Our method is based on the dual theory of choice. We show that it is possible to encode preference relations in distorted probability measures,...

the conventional theory of adverse selection is not supported by most of the empirical works. these studies conclude that low-risk individuals demand more insurance services than high-risks. they refer to this situation as advantageous selection theory. this theory states that loss ratio of insureds may be lower than the population loss ratio while the conventional theory of adverse selection c...

We model a risk-averse newsvendor’s decision-making behavior with some commonly used classes of utility functions within the expected utility theory (EUT) framework. Under fairly general conditions of EUT, we show that a risk-averse newsvendor will order less than an arbitrarily small quantity as selling price gets larger if price is higher than a threshold value, i.e., the optimal order quanti...

Theories of decision under risk that model risk averse behavior with decreasing marginal utility of money have been critiqued with concavity calibration arguments. This paper introduces a convexity calibration that applies to decision theories that represent risk aversion with nonlinear transformation of probabilities. We explain the duality of calibrations that imply implausible large stakes r...

Conventional wisdom holds that dependence among geological prospects increases exploration risk. However, dependence also creates the option to truncate exploration if early results are discouraging. We show that the value of this option creates incentives for explorationists to plunge into dependence; i.e., to assemble portfolios of highly correlated exploration prospects. Risk-neutral and ris...