Academic literature on the topic 'Dynamic decisions under risk'

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Journal articles on the topic "Dynamic decisions under risk"

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Keller, Klaus, Casey Helgeson, and Vivek Srikrishnan. "Climate Risk Management." Annual Review of Earth and Planetary Sciences 49, no. 1 (2021): 95–116. http://dx.doi.org/10.1146/annurev-earth-080320-055847.

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Accelerating global climate change drives new climate risks. People around the world are researching, designing, and implementing strategies to manage these risks. Identifying and implementing sound climate risk management strategies poses nontrivial challenges including ( a) linking the required disciplines, ( b) identifying relevant values and objectives, ( c) identifying and quantifying important uncertainties, ( d) resolving interactions between decision levers and the system dynamics, ( e) quantifying the trade-offs between diverse values under deep and dynamic uncertainties, ( f) communi
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Slattery, Jeffrey P., and Daniel C. Ganster. "Determinants of Risk Taking in a Dynamic Uncertain Context." Journal of Management 28, no. 1 (2002): 89–106. http://dx.doi.org/10.1177/014920630202800106.

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We tested the effects of positive and negative framing on risky decision making in a simulated managerial judgement task. Until now the extensive research on framing effects has been characterized by static contexts, explicit probabilities, and hypothetical gambles. In contrast we simulated a more realistic decision making environment in which individuals chose more or less risky goals in a complex dynamic task that featured uncertain outcomes and meaningful consequences. Decision makers chose a series of performance goals under conditions of either potential losses or gains and also received
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Hertzler, Greg. "Dynamic Decisions under Risk: Application of Ito Stochastic Control in Agriculture." American Journal of Agricultural Economics 73, no. 4 (1991): 1126–37. http://dx.doi.org/10.2307/1242441.

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Song, Hongjuan, and Yushi Jiang. "Dynamic pricing decisions by potential tourists under uncertainty: The effects of tourism advertising." Tourism Economics 25, no. 2 (2018): 213–34. http://dx.doi.org/10.1177/1354816618797250.

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The aim of this study is to examine the advertising information learning processes of potential tourists and observe how potential tourists sequentially adjust their perceived reference prices and purchase intentions with different risk preferences and choices with respect to gains (the current price is lower than the consumer’s reference price) or losses (the current price is higher than the reference price). In this study, a Bayesian experiment was conducted to elicit reference prices in the presence of tourism advertising with uncertain information. The findings show that with respect to ga
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LIN, CHIN-TSAI, and CHENG-RU WU. "REAL OPTIONS: BATCH PROCESS AND MARKET ENTRY/EXIT DECISIONS UNDER UNCERTAINTY." Asia-Pacific Journal of Operational Research 21, no. 01 (2004): 35–52. http://dx.doi.org/10.1142/s0217595904000023.

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Under uncertainty of exchange rate, we extend the batch process production model of Lin et al. (2002) by considering an export-oriented manufacturer making decisions to switch freely between domestic and foreign locations. The export-oriented manufacturer is risk neutral and has rational expectations. We use dynamic programming and Lagrange multiplies for a stochastic optimization control problem to get the productive value of exporter produces in domestic and foreign locations. Next, the export-oriented manufacturer can make decision regarding the optimal entry (exit) trigger for transferable
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SANTOS, FRANCISCO C., VÍTOR V. VASCONCELOS, MARTA D. SANTOS, P. N. B. NEVES, and JORGE M. PACHECO. "EVOLUTIONARY DYNAMICS OF CLIMATE CHANGE UNDER COLLECTIVE-RISK DILEMMAS." Mathematical Models and Methods in Applied Sciences 22, supp01 (2012): 1140004. http://dx.doi.org/10.1142/s0218202511400045.

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Preventing global warming requires overall cooperation. Contributions will depend on the risk of future losses, which plays a key role in decision-making. Here, we discuss an evolutionary game theoretical model in which decisions within small groups under high risk and stringent requirements toward success significantly raise the chances of coordinating to save the planet's climate, thus escaping the tragedy of the commons. We discuss both deterministic dynamics in infinite populations, and stochastic dynamics in finite populations.
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Shi, Yuan, Ting Qu, and LK Chu. "A dynamic Stackelberg game model for portfolio procurement." Industrial Management & Data Systems 116, no. 3 (2016): 350–68. http://dx.doi.org/10.1108/imds-06-2015-0250.

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Purpose – The purpose of this paper is to propose a portfolio procurement framework to response to uncertain customer demand and purchasing price volatility in a simultaneous manner. Then it aims to obtain optimal procurement and production decisions under the portfolio framework to maximize profit. Design/methodology/approach – The portfolio procurement problem is modeled as a dynamic Stackelberg game and Nash equilibrium solutions are obtained. The portfolio procurement framework is analyzed in the settings, with both risk-neutral objective and downside risk constraints measure of contract p
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Iachan, Felipe S. "Capital Budgeting and Risk Taking Under Credit Constraints." Management Science 66, no. 9 (2020): 4292–314. http://dx.doi.org/10.1287/mnsc.2019.3369.

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Limited external financing creates a hedging motive that distorts resource allocation for investment projects. I study these distortions through a dynamic model with endogenous collateral constraints. The hedging motive can be broken into three components: expected future productivity, leverage capacity, and current net worth. Although constrained firms behave as if averse to transitory fluctuations in net worth, they can endogenously pursue increased exposure to both persistent factors that predict future productivity and fluctuations in credit tightness. The most constrained firms abstain fr
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Teeter, Lawrence D., and Jon P. Caulfield. "Stand density management strategies under risk: effects of stochastic prices." Canadian Journal of Forest Research 21, no. 9 (1991): 1373–79. http://dx.doi.org/10.1139/x91-194.

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A method is described for determining optimal economic strategies for density management in loblolly pine (Pinustaeda L.) stands in the southern United States. A stochastic dynamic programming model employs a price state transition matrix constructed using a first-order conditional cumulative density function for price based on time-series data for national forest pine stumpage in the South. The model also incorporates WTHIN, a pine growth and yield simulator widely used in the South to support analyses of alternative stand management strategies. Results indicate that at current average prices
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Ishag, Kheiry Hassan M., and Hag Hamad Abdelaziz. "Evaluating an Investment Opportunity Under Risk and Uncertainty Environment: A Case Study About Profitability and Risk in Desert Farming at Najed Area." Sustainable Agriculture Research 3, no. 4 (2014): 96. http://dx.doi.org/10.5539/sar.v3n4p96.

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<p>Fodder is continuously cultivated in coastal area of Salalah and Batinah region of Sultanate of Oman. However, this created a negative impact on the overall agriculture system and producti­on. The government authority stopped the cultivation of Rhodes grass in coastal area and support farmers with incentive systems in order to increase fodder production investment at Najed area. Due to irrigation water policy regulations, new technical solutions required, underground water availability, fodder investors have little data to help in making investment decisions. In addition, fodder produ
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Dissertations / Theses on the topic "Dynamic decisions under risk"

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Davidson, Erick. "Market and professional decision-making under risk and uncertainty." Columbus, Ohio : Ohio State University, 2007. http://rave.ohiolink.edu/etdc/view?acc%5Fnum=osu1196261774.

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Du, Wen. "Intertemporal risk management decisions of farmers under preference, market, and policy dynamics." Online access for everyone, 2005. http://www.dissertations.wsu.edu/Dissertations/Spring2005/W%5FDu%5F051605.pdf.

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Zheng, Yu. "Productivité de l'agriculture française et volatilité des prix." Thesis, Rennes, Agrocampus Ouest, 2018. http://www.theses.fr/2018NSARE051/document.

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À la suite des réformes successives de la Politique Agricole Commune (PAC), les soutiens publics par des prix ont diminué au profit de soutiens directs aux revenus agricoles. Cela a exposé les agriculteurs français à une grande volatilité des prix, reconnectés avec les prix mondiaux.Cette thèse mesure l'évolution de la productivité de l'agriculture française dans un modèle dynamique stochastique en intégrant la récente augmentation de la volatilité des prix. Nous étudions le lien dynamique entre le risque de prix, les décisions des agriculteurs et la productivité dans le cadre de l'estimation
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Samson, Sundeep. "Performance based decisions under uncertainty and risk." Connect to this title online, 2008. http://etd.lib.clemson.edu/documents/1219855032/.

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Martinez-Correa, Jimmy. "Decisions under Risk, Uncertainty and Ambiguity: Theory and Experiments." Digital Archive @ GSU, 2012. http://digitalarchive.gsu.edu/rmi_diss/29.

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I combine theory, experiments and econometrics to undertake the task of disentangling the subtleties and implications of the distinction between risk, uncertainty and ambiguity. One general conclusion is that the elements of this methodological trilogy are not equally advanced. For example, new experimental tools must be developed to adequately test the predictions of theory. My dissertation is an example of this dynamic between theoretical and applied economics.
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Hill, William Trey. "A comparison of ecological and evolutionary models of decisions under risk." Diss., Kansas State University, 2013. http://hdl.handle.net/2097/15531.

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Doctor of Philosophy<br>Department of Psychological Sciences<br>Gary L. Brase<br>Risky decision making occurs in both humans and non-human animals. For a large portion of the history of scientific investigation into human judgment and decision making, risky behavior has been viewed as flawed and irrational. However, the past several decades have seen advances in the view of human rationality. Scientists have suggested that, rather than using probability theory as the metric by which humans are judged as rational or irrational, human minds should be evaluated with respect to specific ecologi
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Capers, Robbin G. "Foraging Decisions of Nocturnal Mice Under Direct and Indirect Cues of Predation Risk." Scholar Commons, 2010. https://scholarcommons.usf.edu/etd/1589.

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The perception of increased predation risk by nocturnal mice and other small mammals has been shown to reduce activity levels, particularly in foraging effort. Various cues of predation risk have been used in previous studies, but few have assessed the potential interactions between different types of cues. I conducted field, laboratory, and enclosure experiments using predator scents, artificial light, and microhabitat variables to determine the effects of direct and indirect cues of predation risk on foraging behavior in wild nocturnal mice. Experimental foraging trays served as artificial r
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Wurzbacher, Anke Dagmar. "Optimal conservation under ecological risk and uncertainty : a dynamic analysis." Thesis, University of Cambridge, 2006. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.613982.

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Pratikakis, Nikolaos. "Multistage decisions and risk in Markov decision processes towards effective approximate dynamic programming architectures /." Diss., Atlanta, Ga. : Georgia Institute of Technology, 2008. http://hdl.handle.net/1853/31654.

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Thesis (Ph.D)--Chemical Engineering, Georgia Institute of Technology, 2009.<br>Committee Chair: Jay H. Lee; Committee Member: Martha Grover; Committee Member: Matthew J. Realff; Committee Member: Shabbir Ahmed; Committee Member: Stylianos Kavadias. Part of the SMARTech Electronic Thesis and Dissertation Collection.
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Ortiz-Vertiz, Salvador R. "Potential uranium supply system based upon computer simulation of sequential exploration and decisions under risk." Diss., The University of Arizona, 1991. http://hdl.handle.net/10150/185679.

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One of the more elusive problems in the area of mineral resource assessment is the comprehensive description of potential supply from undiscovered deposits, especially for economic conditions outside of historical experience. This dissertation consists of the design of a Monte Carlo simulation system to estimate potential supply of roll-type deposits. The system takes a given uranium endowment probability distribution and aims at two major and interrelated objectives. First, to design a system that estimates potential supply even when prices are much higher than previous or current prices. Sec
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Books on the topic "Dynamic decisions under risk"

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Hung, Nguyen Manh, and Nguyen Van Quyen. Dynamic Timing Decisions Under Uncertainty. Springer Berlin Heidelberg, 1994. http://dx.doi.org/10.1007/978-3-642-51508-8.

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Christian, Gollier, and Schlesinger Harris, eds. Economic and financial decisions under risk. Princeton University Press, 2005.

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Information-gap decision theory: Decisions under severe uncertainty. Academic Press, 2001.

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1952-, Ben-Haim Yakov, ed. Info-gap decision theory: Decisions under severe uncertainty. 2nd ed. Academic, 2006.

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Deep, Akash. Optimal dynamic hedging using futures under a borrowing constraint. Bank for International Settlements, Monetary and Economic Dept., 2002.

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Bu que ding yu jing ji jue ce: Economic decisions under uncertainty. Han lu tu shu chu ban you xian gong si, 2013.

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Hung, Nguyen Manh. Dynamic timing decisions under uncertainty: Essays on invention, innovation, and exploration in resource economics. Springer-Verlag, 1994.

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Naief T.N.H Al-Otaibi. Construction decisions under risk. 1986.

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Schlesinger, Harris, Louis Eeckhoudt, and Christian Gollier. Economic and Financial Decisions under Risk. Princeton University Press, 2011.

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Economic Decisions Under Uncertainty. 2nd ed. Springer, 1989.

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Book chapters on the topic "Dynamic decisions under risk"

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Gheorghe, Adrian V. "Utility Functions and Decisions Under Risk." In Decision Processes in Dynamic Probabilistic System. Springer Netherlands, 1990. http://dx.doi.org/10.1007/978-94-009-0493-4_3.

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Chiarella, Carl, Willi Semmler, Chih-Ying Hsiao, and Lebogang Mateane. "Asset Accumulation and Portfolio Decisions Under Inflation Risk." In Dynamic Modeling and Econometrics in Economics and Finance. Springer Berlin Heidelberg, 2016. http://dx.doi.org/10.1007/978-3-662-49229-1_8.

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Rothenberg, Jerome. "Consumption Style as Choice Under Risk Static Choice, Dynamic Irrationality and Crimes of Passion." In Decision Making Under Risk and Uncertainty. Springer Netherlands, 1992. http://dx.doi.org/10.1007/978-94-011-2838-4_13.

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Rapoport, Anatol. "Decisions under Risk." In Decision Theory and Decision Behaviour. Springer Netherlands, 1989. http://dx.doi.org/10.1007/978-94-015-7840-0_5.

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Wiese, Harald. "Decisions under risk." In Advanced Microeconomics. Springer Fachmedien Wiesbaden, 2021. http://dx.doi.org/10.1007/978-3-658-34959-2_5.

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Geiger, Gebhard. "A Dynamic Account of Rational Decision Making under Uncertainty: The Case of Risk Assessment in Hazardous Technological Systems." In Integrative Systems Approaches to Natural and Social Dynamics. Springer Berlin Heidelberg, 2001. http://dx.doi.org/10.1007/978-3-642-56585-4_21.

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Buckley, James J. "Fuzzy Decisions Under Risk." In Fuzzy Probabilities. Physica-Verlag HD, 2003. http://dx.doi.org/10.1007/978-3-642-86786-6_7.

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Sinn, Hans-Werner. "Rational Behavior under Risk." In Economic Decisions Under Uncertainty. Physica-Verlag HD, 1989. http://dx.doi.org/10.1007/978-3-642-61547-4_2.

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Muller, Mike. "Managing Current Climate Variability Can Ensure Water Security Under Climate Change." In African Handbook of Climate Change Adaptation. Springer International Publishing, 2021. http://dx.doi.org/10.1007/978-3-030-42091-8_243-1.

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AbstractWater resources will be significantly impacted upon by climate change, and these impacts will be transmitted to the many sectors and services dependent on them. The nature, extent, and timing of these impacts remain uncertain, but the long lifetime of water infrastructures requires that their planning, development, and operations should be resilient to climate changes. An effective approach is to focus on the management of current climate variability as it relates to water, which strengthens the ability of communities and countries to foresee, manage, and adapt to the impacts of longer-term climate change on water-related activities. This approach is illustrated by cases from Southern and Eastern Africa.Current “stationary” stochastic methods of hydrological analysis can still be used under assumptions of a “dynamic stationarity” although more regular updating of hydrological data will be required. Methodologies to evaluate economic dimensions of risk reduction introduce additional uncertainties but may help decision-makers to understand the risks and opportunities. Diversification of sources and sequencing of resource development pathways are helpful strategies to adapt to climate change but must ensure that risks affecting different sources are not correlated. Attention must also be given to demand-side interventions in order to reconcile supply and demand, and these perspectives must be shared with social, economic, and political actors to ensure that strategies are communicated, understood, and supported by the wider community.
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Muller, Mike. "Managing Current Climate Variability Can Ensure Water Security Under Climate Change." In African Handbook of Climate Change Adaptation. Springer International Publishing, 2021. http://dx.doi.org/10.1007/978-3-030-45106-6_243.

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AbstractWater resources will be significantly impacted upon by climate change, and these impacts will be transmitted to the many sectors and services dependent on them. The nature, extent, and timing of these impacts remain uncertain, but the long lifetime of water infrastructures requires that their planning, development, and operations should be resilient to climate changes. An effective approach is to focus on the management of current climate variability as it relates to water, which strengthens the ability of communities and countries to foresee, manage, and adapt to the impacts of longer-term climate change on water-related activities. This approach is illustrated by cases from Southern and Eastern Africa.Current “stationary” stochastic methods of hydrological analysis can still be used under assumptions of a “dynamic stationarity” although more regular updating of hydrological data will be required. Methodologies to evaluate economic dimensions of risk reduction introduce additional uncertainties but may help decision-makers to understand the risks and opportunities. Diversification of sources and sequencing of resource development pathways are helpful strategies to adapt to climate change but must ensure that risks affecting different sources are not correlated. Attention must also be given to demand-side interventions in order to reconcile supply and demand, and these perspectives must be shared with social, economic, and political actors to ensure that strategies are communicated, understood, and supported by the wider community.
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Conference papers on the topic "Dynamic decisions under risk"

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Petro, Bidyuk, Terentiev Oleksandr, and Prosyankina-Zharova Tatyana. "Dynamic processes forecasting and risk estimation under uncertainty using decision support systems." In 2017 IEEE First Ukraine Conference on Electrical and Computer Engineering (UKRCON). IEEE, 2017. http://dx.doi.org/10.1109/ukrcon.2017.8100355.

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Mun, Changuk, and Junho Song. "Probabilistic Modeling and Inference for Structures under Sequence of Hazardous Events Using Matrix-based Bayesian Network." In IABSE Conference, Seoul 2020: Risk Intelligence of Infrastructures. International Association for Bridge and Structural Engineering (IABSE), 2020. http://dx.doi.org/10.2749/seoul.2020.338.

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&lt;p&gt;Structures are often subject to a sequence of hazardous events, e.g. main earthquake excitation followed by aftershocks. Even though such hazard brings about a crucial risk to our societies, its quantification is generally challenging because of its complexity. To address the technical challenge effectively, this study proposes to use Bayesian networks (BNs). Sequences of main and aftershocks are artificially generated to quantify the BN model representing the complex hazard. In addition, the structural responses of a hysteretic single-degree-of-freedom (SDOF) system under the generat
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Baliwangi, Lahar, Ketut Buda Artana, and Kenji Ishida. "Risk Based Multi-Objective Simulation of Ship Main Engine Systems." In ASME 2009 28th International Conference on Ocean, Offshore and Arctic Engineering. ASMEDC, 2009. http://dx.doi.org/10.1115/omae2009-79258.

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The research is to understand the behavior of components and systems under various operational conditions, and with various maintenance policies. Therefore, this research is expected to give policy options to management. And further, inform the likely impacts of those options. This research presents a flexible system to simulate the effect of these factors to a system its reliability, operation and the maintenance costs. The model studied consists of failure rate, time to maintain, decision to maintain (or not), degree of how good the maintenance is done, the effect on component after maintena
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Pham, Hai V., Khang D. Tran, Thang Cao, Eric Cooper, and Katsuari Kamei. "A New Approach Using Dynamic Group Decision Making for Selection of Multiple Alternatives Under Risk and Uncertainty." In 2011 Third International Conference on Knowledge and Systems Engineering (KSE). IEEE, 2011. http://dx.doi.org/10.1109/kse.2011.34.

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Mangold, David, W. Kent Muhlbauer, Jim Ponder, and Tony Alfano. "Implementation of Quantitative Risk Assessment: Case Study." In 2014 10th International Pipeline Conference. American Society of Mechanical Engineers, 2014. http://dx.doi.org/10.1115/ipc2014-33641.

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Risk management of pipelines is a complex challenge due to the dynamic environment of the real world coupled with a wide range of system types installed over many decades. Various methods of risk assessment are currently being used in industry, many of which utilize relative scoring. These assessments are often not designed for the new integrity management program (IMP) requirements and are under direct challenge by regulators. SemGroup had historically used relative risk assessment methodologies to help support risk management decision-making. While the formality offered by these early method
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Yang, Tae G., Kosuke Ishii, and Harshavardhan Karandikar. "Decision Analysis Approach for Improving Product Development Decision Quality: An Interactive Simulation Game Showcase." In ASME 2005 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference. ASMEDC, 2005. http://dx.doi.org/10.1115/detc2005-85598.

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Product development decisions in the early stages of the development process critically impact life cycle cost and revenue potentials. Design for Manufacturability tools and methods provide key insights into product’s requirements based on the voice of customers. Other quantitative analysis tools, such as computer aided modeling and optimization techniques enhance product developers’ understanding in the products under development. However, the dynamic nature of product development process suffers from unavoidable risks due to the lack of information on key parameters of a product’s life cycle
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Cohn, Marvin J., Jeffrey T. Fong, and Philip M. Besuner. "A Quantitative Approach to a Risk-Based Inspection Methodology of Main Steam and Hot Reheat Piping Systems." In ASME 2008 Pressure Vessels and Piping Conference. ASMEDC, 2008. http://dx.doi.org/10.1115/pvp2008-61242.

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This paper presents an evaluation of the failure probability and cost of high energy piping (HEP) failures. Using a conventional definition of risk as the product of failure probability and failure consequence, we propose in this paper a dollar value of consequence in order to develop a quantitative approach to risk-based inspection (RBI) methodology. A 16-year historical database of probability and consequence was evaluated as an RBI methodology for devising a life management strategy for welds in main steam and hot reheat piping systems. This evaluation provides us the raw data necessary for
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HomChaudhuri, Baisravan, Sheng Zhao, Kelly Cohen, and Manish Kumar. "Generation of Optimal Fire-Line for Fighting Wildland Fires Using Genetic Algorithms." In ASME 2009 Dynamic Systems and Control Conference. ASMEDC, 2009. http://dx.doi.org/10.1115/dscc2009-2707.

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Every year all over the world, wildfires do extensive damages to the human lives, properties and natural resources. National Interagency Fire Center data provides a detailed description of the severe damages caused by the wildfires every year. Forest Fire Decision Support Systems (FFDSS) have been developed all over the world during the last thirty years with the purpose of fire detection, fire behavior prediction, and risk assessment. But optimized wildland fire containment strategies are largely lacking in these FFDSS. In this paper, decision making strategies have been formulated for wildla
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Maturana, Marcos Coelho, Victor Rafael Souza, Valentina Clavijo Mesa, Marcelo Ramos Martins, Anderson Takehiro Oshiro, and Adriana Miralles Schleder. "MIL and MIRO Diagrams for Risk-Based Positioning of Drilling Rigs With Dynamic Positioning System." In ASME 2020 39th International Conference on Ocean, Offshore and Arctic Engineering. American Society of Mechanical Engineers, 2020. http://dx.doi.org/10.1115/omae2020-18834.

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Abstract Currently, most offshore oil exploration operations are performed by Dynamically Positioned (DP) units; in Brazil, the use of these units is traditional in drilling operations (DP drilling rigs). The advent of DP systems, which allow the vessel to maintain a certain position without the need for anchor lines, has brought great flexibility to the oil field; however, usually in drilling areas, there are a large number of operations being performed simultaneously and subject to weather conditions and a failure of the DP system may cause these vessels to drift, which may occasionally resu
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Molloy, Ian, Luke Dickens, Charles Morisset, Pau-Chen Cheng, Jorge Lobo, and Alessandra Russo. "Risk-based security decisions under uncertainty." In the second ACM conference. ACM Press, 2012. http://dx.doi.org/10.1145/2133601.2133622.

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Reports on the topic "Dynamic decisions under risk"

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Hu, Yingyao, Ruli Xiao, and Yonghong An. Dynamic decisions under subjective expectations: a structural analysis. The IFS, 2018. http://dx.doi.org/10.1920/wp.cem.2018.1118.

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Perdigão, Rui A. P., and Julia Hall. Spatiotemporal Causality and Predictability Beyond Recurrence Collapse in Complex Coevolutionary Systems. Meteoceanics, 2020. http://dx.doi.org/10.46337/201111.

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Causality and Predictability of Complex Systems pose fundamental challenges even under well-defined structural stochastic-dynamic conditions where the laws of motion and system symmetries are known. However, the edifice of complexity can be profoundly transformed by structural-functional coevolution and non-recurrent elusive mechanisms changing the very same invariants of motion that had been taken for granted. This leads to recurrence collapse and memory loss, precluding the ability of traditional stochastic-dynamic and information-theoretic metrics to provide reliable information about the n
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Financial Stability Report - First Semester of 2020. Banco de la República de Colombia, 2021. http://dx.doi.org/10.32468/rept-estab-fin.1sem.eng-2020.

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In the face of the multiple shocks currently experienced by the domestic economy (resulting from the drop in oil prices and the appearance of a global pandemic), the Colombian financial system is in a position of sound solvency and adequate liquidity. At the same time, credit quality has been recovering and the exposure of credit institutions to firms with currency mismatches has declined relative to previous episodes of sudden drops in oil prices. These trends are reflected in the recent fading of red and blue tonalities in the performance and credit risk segments of the risk heatmaps in Grap
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Financial Stability Report - Second Semester of 2020. Banco de la República de Colombia, 2021. http://dx.doi.org/10.32468/rept-estab-fin.sem2.eng-2020.

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The Colombian financial system has not suffered major structural disruptions during these months of deep economic contraction and has continued to carry out its basic functions as usual, thus facilitating the economy's response to extreme conditions. This is the result of the soundness of financial institutions at the beginning of the crisis, which was reflected in high liquidity and capital adequacy indicators as well as in the timely response of various authorities. Banco de la República lowered its policy interest rates 250 points to 1.75%, the lowest level since the creation of the new ind
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