Lecture Making hard decisions with the decision tool suite (3e) - Chapter 14: Risk attitudes. After completing this section, you will understand the knowledge about the preference side of decision analysis; how can we model a decision maker’s preferences?; problems associated with risk and return tradeoffs; introduce an approach called utility theory that allows us to incorporate riskiness; develop the basic tools of utility theory for risky decision making; how to deal with some decision making biases, . |
