Ranking risky alternatives: innovations in subjective utility analysis Conference Paper

abstract

• Over the past 50 years there have been innovations in the quantitative methods available to rank risky alternatives (mean-variance (MV), first degree stochastic dominance (FSD), and second degree stochastic dominance (SDS)). Two recent innovations, stochastic efficiency with respect to a function (SERF) and StopLight are compared to MV, FSD, and SDS to demonstrate the strengths and weaknesses of each method. The results indicate that SERF and Stoplight are powerful tools that do not suffer from some of the limitations as the other risk ranking methods.

name of conference

• Risk Analysis VI

authors

• Outlaw, Joe
• Richardson, James

published proceedings

• RISK ANALYSIS VI: SIMULATION AND HAZARD MITIGATION

author list (cited authors)

• Richardson, J. W., & Outlaw, J. L.

citation count

• 14

complete list of authors

• Richardson, JW||Outlaw, JL

publication date

• April 2008

publisher

• WITPRESS LTD.  Publisher

published in

• WIT Transactions on Information and Communication Technologies  Journal

keywords

• Certainty Equivalent
• Mean Variance
• Stochastic Dominance
• Stochastic Efficiency
• Stoplight

Digital Object Identifier (DOI)

• 10.2495/risk080231

International Standard Book Number (ISBN) 13

• 978-1-84564-104-7

start page

• 213

end page

• 224

volume

• I

URL

• http%3A%2F%2Fdx.doi.org%2F10.2495%2Frisk080231