DECISIONS BASED ON A GENERAL PREMIUM PRINCIPLE IN CUMULATIVE PROSPECT THEORY




Abstract:
Cumulative prospect theory (CPT) has provided one of the most influential accounts of how people make decisions under risk. CPT is the model for comparing two decisions amounts regarding two pairs of sets, the positive and negative features of the alternatives. The premium principle is a rule for assigning a premium to an insurance risk. In this article a general CPT premium principle is introduced and characterized. It covers many different types premium principles used in actuarial science, e.g. distortion premium principle, the net premium principle, the asymmetric Choquet integral based premium principle.

CITATION:

IEEE format

E. Pap, A. Simićević, B. Mihailović, M. Štrboja, “Decisions Based on a General Premium Principle in Cumulative Prospect Theory,” in Sinteza 2017 - International Scientific Conference on Information Technology and Data Related Research, Belgrade, Singidunum University, Serbia, 2017, pp. 315-319. doi: 10.15308/Sinteza-2017-315-319 

APA format

Pap, E., Simićević, A., Mihailović, B., Štrboja, M. (2017). Decisions Based on a General Premium Principle in Cumulative Prospect Theory. Paper presented at Sinteza 2017 - International Scientific Conference on Information Technology and Data Related Research. doi:10.15308/Sinteza-2017-315-319

BibTeX format
Download

RefWorks Tagged format
Download