Four Climbers Dead On Everest, 'Mountain Of Extremes'
Four have died in the span of four days on Mount Everest, including a Sherpa and two Westerners. Two other climbers are missing.
20 Gadgets Which Make Life Simpler
Every day, we come up against annoying things that no one has ever found a way to resolve which works all the time. But in some cases, thanks to human ingenuity we are moving towards this. Here are 20...
Risk Taking Across Life Span: The Effects Of Hardship
With increasing age, the propensity to take physical, social, legal or financial risks decreases. Researchers from the University of Basel and the Max Planck Institute for Human Development in Berlin ...
Risk: Your Best Friend and Worst Enemy -- The Motley Fool
A few things you should know about it. Risk fills in the gaps between your plans and the relentless power of chance, accident, luck, and misinformation. It sits over your shoulder while you're plannin...
Decision theory
Decision theory or theory of choice in economics, psychology, philosophy, mathematics, computer science, and statistics is concerned with identifying the values, uncertainties and other issues relevan...
Four Climbers Dead On Everest, 'Mountain Of Extremes'
Four have died in the span of four days on Mount Everest, including a Sherpa and two Westerners. Two other climbers are missing.
Insurance
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent,...
Insurance - Wikipedia
20 Gadgets Which Make Life Simpler
Every day, we come up against annoying things that no one has ever found a way to resolve which works all the time. But in some cases, thanks to human ingenuity we are moving towards this. Here are 20...
Risk Taking Across Life Span: The Effects Of Hardship
With increasing age, the propensity to take physical, social, legal or financial risks decreases. Researchers from the University of Basel and the Max Planck Institute for Human Development in Berlin ...
Expenditure minimization problem
In microeconomics, the expenditure minimization problem is another perspective on the utility maximization problem: "how much money do I need to reach a certain level of happiness?". This question co...
Availability heuristic
The availability heuristic is a mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method or decision. The availability heu...
Cobb–Douglas production function
In economics, the Cobb–Douglas production function is a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or mor...
Cobb–Douglas production function - Wikipedia
Ellsberg paradox
The Ellsberg paradox is a paradox in decision theory in which people's choices violate the postulates of subjective expected utility. It is generally taken to be evidence for ambiguity aversion. The p...
Framing effect (psychology)
The framing effect is an example of cognitive bias, in which people react to a particular choice in different ways depending on whether it is presented as a loss or as a gain. People tend to avoid ris...
Prospect theory
Prospect theory is a behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known. The theory sta...
Risk neutral
In economics and finance, risk neutral preferences are neither risk averse nor risk seeking. A risk neutral party's decisions are not affected by the degree of uncertainty in a set of outcomes, so a r...
Risk-seeking
In economics and finance, a risk-seeker or risk-lover is a person who has a preference for risk. While most investors are considered risk averse, one could view casino-goers as risk-seeking. If offer...
Attribute substitution
Attribute substitution is a psychological process thought to underlie a number of cognitive biases and perceptual illusions. It occurs when an individual has to make a judgment (of a target attribute)...
Attribute substitution - Wikipedia
Odds algorithm
The odds-algorithm is a mathematical method for computing optimalstrategies for a class of problems that belong to the domain of optimal stopping problems. Their solution follows from the odds-strat...
Utility
Utility, or usefulness, is the (perceived) ability of something to satisfy needs or wants. Utility is an important concept in economics and game theory, because it represents satisfaction experienced ...
Favourite-longshot bias
In gambling and economics, the favourite-longshot bias is an observed phenomenon where on average, bettors tend to overvalue "long shots" and undervalue favourites. That is, in a horse race where one ...
Allais paradox
The Allais paradox is a choice problem designed by Maurice Allais (1953) to show an inconsistency of actual observed choices with the predictions of expected utility theory.
The Allais pa...
Loss aversion
In economics and decision theory, loss aversion refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Most studies suggest that losses are twice as powerful, psychological...
Cumulative prospect theory
Cumulative prospect theory (CPT) is a model for descriptive decisions under risk and crisis which was introduced by Amos Tversky and Daniel Kahneman in 1992 (Tversky, Kahneman, 1992). It is a further ...
Cumulative prospect theory - Wikipedia
Framing (social sciences)
In the social sciences, framing comprises a set of concepts and theoretical perspectives on how individuals, groups, and societies organize, perceive, and communicate about reality. Framing involves t...
Anchoring
Anchoring or focalism is a cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered (the "anchor") when making decisions. During decision m...
Representativeness heuristic
The representativeness heuristic is used when making judgments about the probability of an event under uncertainty. It is one of a group of heuristics (simple rules governing judgment or decision-maki...
Representativeness heuristic - Wikipedia