@article{ref1,
title="A rational decision rule with extreme events",
journal="Risk analysis",
year="2006",
author="Basili, Marcello",
volume="26",
number="6",
pages="1721-1728",
abstract="Risks induced by extreme events are characterized by small or ambiguous probabilities, catastrophic losses, or windfall gains. Through a new functional, that mimics the restricted Bayes-Hurwicz criterion within the Choquet expected utility approach, it is possible to represent the decisionmaker behavior facing both risky (large and reliable probability) and extreme (small or ambiguous probability) events. A new formalization of the precautionary principle (PP) is shown and a new functional, which encompasses both extreme outcomes and expectation of all the possible results for every act, is claimed.<p /><p>Language: en</p>",
language="en",
issn="0272-4332",
doi="10.1111/j.1539-6924.2006.00826.x",
url="http://dx.doi.org/10.1111/j.1539-6924.2006.00826.x"
}