From stochastic dominance to mean-risk models: semideviations as risk measures
Article Abstract:
The relations between two approaches, namely stochastic dominance and mean-risk analysis, for modeling the choice among uncertain outcomes are analyzed. The former is based on an axiomatic model of risk-averse preferences but does not provide a simple computational recipe. On the other hand, the latter quantifies the problem based on only two criteria with simple trade-off analysis, but is not capable of modeling all risk-averse preferences. It is found that standard deviation as the risk measure makes the mean risk approach consistent with the second degree stochastic dominance.
Publication Name: European Journal of Operational Research
Subject: Business, international
ISSN: 0377-2217
Year: 1999
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On the lexicographic minimax approach to location problems
Article Abstract:
A lexicographic minimax solution concept, or lexicographic center, is developed as an improved standard minimax approach to problems in locating public facilities. The concept is in compliance with the principle of transfers and the Pareto-optimality principle, two principles which the standard minimax approach fail to follow. Discrete location problems can also be tackled through the lexicographic minimax solution concept using computational algorithms.
Publication Name: European Journal of Operational Research
Subject: Business, international
ISSN: 0377-2217
Year: 1997
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