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Shortfall systemic (multivariate) risk measures $\rho$ defined through an $N$-dimensional multivariate utility function $U$ and random allocations can be represented as classical (one dimensional) shortfall risk measures associated to an…

Mathematical Finance · Quantitative Finance 2023-06-21 Alessandro Doldi , Marco Frittelli , Emanuela Rosazza Gianin

Set-valued risk measures on $L^p_d$ with $0 \leq p \leq \infty$ for conical market models are defined, primal and dual representation results are given. The collection of initial endowments which allow to super-hedge a multivariate claim…

Risk Management · Quantitative Finance 2014-05-22 Andreas H. Hamel , Frank Heyde , Birgit Rudloff

Standard decision theory seeks conditions under which a preference relation can be compressed into a single real-valued function. However, when preferences are incomplete or intransitive, a single function fails to capture the agent's…

Theoretical Economics · Economics 2026-02-05 Safal Raman Aryal

This paper is devoted to the introduction and study of a new family of multivariate elicitable risk measures. We call the obtained vector-valued measures multivariate expectiles. We present the different approaches used to construct our…

Methodology · Statistics 2016-09-27 Véronique Maume-Deschamps , Didier Rullière , Khalil Saïd

New versions of the set-valued average value at risk for multivariate risks are introduced by generalizing the well-known certainty equivalent representation to the set-valued case. The first "regulator" version is independent from any…

Risk Management · Quantitative Finance 2014-05-22 Andreas H. Hamel , Birgit Rudloff , Mihaela Yankova

Choice functions constitute a simple, direct and very general mathematical framework for modelling choice under uncertainty. In particular, they are able to represent the set-valued choices that typically arise from applying decision rules…

Artificial Intelligence · Computer Science 2018-06-05 Jasper De Bock , Gert de Cooman

We develop a tractable model of realization utility that studies the role of reference-dependent S-shaped preferences in a dynamic investment setting with reinvestment. Our model generates both voluntarily realized gains and losses. It…

General Finance · Quantitative Finance 2014-08-14 Jonathan E. Ingersoll , Lawrence J. Jin

Utility representations of preference relations in symmetric topological spaces have the advantage of fully characterising these relations. But, this is not true in the case of representations of preference relations that are mostly…

General Topology · Mathematics 2023-04-07 Athanasios Andrikopoulos

The univariate distorted distribution were introduced in risk theory to represent changes (distortions) in the expected distributions of some risks. Later they were also applied to represent distributions of order statistics, coherent…

Statistics Theory · Mathematics 2020-10-28 Jorge Navarro , Camilla Calì , Maria Longobardi , Fabrizio Durante

We consider the optimal risk sharing problem with a continuum of agents, modeled via a non-atomic measure space. Individual preferences are not assumed to be convex. We show the multiplicity of agents induces the value function to be…

Theoretical Economics · Economics 2025-09-12 Vasily Melnikov

Spectral risk measures (SRMs) are risk measures that take account of user riskaversion, but to date there has been little guidance on the choice of utility function underlying them. This paper addresses this issue by examining alternative…

Risk Management · Quantitative Finance 2011-03-30 Kevin Dowd , John Cotter , Ghulam Sorwar

Real-world engineering systems are typically compared and contrasted using multiple metrics. For practical machine learning systems, performance tuning is often more nuanced than minimizing a single expected loss objective, and it may be…

Optimization and Control · Mathematics 2016-12-19 Ian Dewancker , Michael McCourt , Samuel Ainsworth

We introduce two kinds of risk measures with respect to some reference probability measure, which both allow for a certain order structure and domination property. Analyzing their relation to each other leads to the question when a certain…

Risk Management · Quantitative Finance 2022-04-15 Christa Cuchiero , Guido Gazzani , Irene Klein

In the conditional setting we provide a complete duality between quasiconvex risk measures defined on $L^{0}$ modules of the $L^{p}$ type and the appropriate class of dual functions. This is based on a general result which extends the usual…

Risk Management · Quantitative Finance 2012-09-06 Marco Frittelli , Marco Maggis

An experimenter seeks to learn a subject's preference relation. The experimenter produces pairs of alternatives. For each pair, the subject is asked to choose. We argue that, in general, large but finite data do not give close…

Theoretical Economics · Economics 2018-08-01 Christopher P. Chambers , Federico Echenique , Nicolas S. Lambert

This paper introduces conceptual relations that synthesize utilitarian and logical concepts, extending the logics of preference of Rescher. We define first, in the context of a possible worlds model, constraint-dependent measures that…

Artificial Intelligence · Computer Science 2013-03-26 Enrique H. Ruspini

The relationship between set-valued risk measures for processes and vectors on the optional filtration is investigated. The equivalence of risk measures for processes and vectors and the equivalence of their penalty function formulations…

Risk Management · Quantitative Finance 2021-11-30 Yanhong Chen , Zachary Feinstein

Recently, it has been emphasized that the possibility theory framework allows us to distinguish between i) what is possible because it is not ruled out by the available knowledge, and ii) what is possible for sure. This distinction may be…

Artificial Intelligence · Computer Science 2013-01-07 Salem Benferhat , Didier Dubois , Souhila Kaci , Henri Prade

We provide a constructive way of defining new elicitable risk measures that are characterised by a multiplicative scoring function. We show that depending on the choice of the scoring function's components, the resulting risk measure…

Mathematical Finance · Quantitative Finance 2025-03-06 Akif Ince , Marlon Moresco , Ilaria Peri , Silvana M. Pesenti

In economics, risk aversion is modeled via a concave Bernoulli utility within the expected-utility paradigm. We propose a simple test of expected utility and concavity. We find little support for either: only 30 percent of the choices are…

General Economics · Economics 2023-08-07 Jacob K Goeree , Bernardo Garcia-Pola