Theorem of existence of ruptures for mean values on finite numerical segments. Discrete case

Harin, Alexander (2011): Theorem of existence of ruptures for mean values on finite numerical segments. Discrete case.

Abstract

The proof of the theorem of existence of the ruptures, namely the proof of maximality, is improved. The theorem may be used in economics and explain the well-known problems such as Allais’ paradox. Illustrated examples of ruptures are presented.

• Item Type: MPRA Paper
• Language: English
• Keywords: utility; utility theory; probability; uncertainty; decisions; economics; Allais paradox; risk aversion
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; C - Mathematical and Quantitative Methods > C0 - General; C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C44 - Operations Research ; Statistical Decision Theory; G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance ; Insurance Companies ; Actuarial Studies; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General

References

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Harin, A. (2010-2) "Theorem of existence of ruptures in the probability scale. II." (in Russian) Munich Personal RePEc Archive, 22633, 2010.

Harin, А. (2010-1) "Theorem of existence of ruptures in the probability scale" (in Russian) Financial and Actuarial Mathematics and Eventoconverging Technologies FAMET'2010.

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