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

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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 wellknown problems such as Allais’ paradox. Illustrated examples of ruptures are presented.
Item Type:  MPRA Paper 

Original Title:  Theorem of existence of ruptures for mean values on finite numerical segments. Discrete case 
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 DecisionMaking 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 
Item ID:  35650 
Depositing User:  Alexander Harin 
Date Deposited:  31 Dec 2011 11:41 
Last Modified:  02 Oct 2019 16:48 
References:  Allais, M. (1953) Le comportement de l'homme rationnel devant le risque: Critique le postulats et axioms de L'École Américaine. Econometrica, 21: 503546. Bernoulli, D. (1738) Specimen Theoriae Novae de Mensura Sortis. Commentarii Academiae Scientiarum Imperialis Petropolitanae, 5: 175192. English translation: Exposition of a New Theory on the Measurement of Risk. Econometrica, 22 (1954): 2336. Harin, A. (20102) "Theorem of existence of ruptures in the probability scale. II." (in Russian) Munich Personal RePEc Archive, 22633, 2010. Harin, А. (20101) "Theorem of existence of ruptures in the probability scale" (in Russian) Financial and Actuarial Mathematics and Eventoconverging Technologies FAMET'2010. Harin, А. (2009) "Taking into account the border effects of noises – is it a new way to solve the problems of the utility theory?" (in Russian) First Russian economic congress (REC2009). Harin, А. (2007) "Principle of uncertain future, examples of its application in economics, potentials of its applications in theories of complex systems, in set theory, probability theory and logic" (in Russian) Seventh International Scientific School "Modelling and Analysis of Safety and Risk in complex systems" 2007. Kahneman, D. and Thaler, R. (2006) "Anomalies: Utility Maximization and Experienced Utility" Journal of Economic Perspectives, 20, #1: 221234. Neumann, J. von and Morgenstern O. (1944) Theory of Games and Economic Behavior. Princeton University Press. Tversky, A. and Wakker, P. (1995) Risk attitudes and decision weights. Econometrica, 63: 12551280. 
URI:  https://mpra.ub.unimuenchen.de/id/eprint/35650 