Accession Number:

ADA444691

Title:

Distorted Risk Measures with Application to Military Capability Shortfalls

Descriptive Note:

Journal article Jan-Jun 2005

Corporate Author:

AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH

Report Date:

2005-12-15

Pagination or Media Count:

21.0

Abstract:

We consider the problem of selecting a appropriate distortion function and associated parameters to account for rare but catastrophic events that may result from a shortfall of military or security capabilities. Additionally, we describe the means by which a decision maker may allocate resources, subject to a finite budget constraint, while considering the impact of the risk of such shortfalls. The optimal decision is shown to be sensitive to the decision makers level of risk aversion.

Subject Categories:

  • Administration and Management
  • Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE