The defining feature of the precautionary approach is the development of risk-averse objectives (Food and Agricultural Organization of the United Nations 1995; Peterman 2004).
One's preference to favor robustness is associated with being risk averse over the fundamental objectives and is captured by using a concave utility function.
By adding the risk-averse factor into objective functions and using a concept of risk tolerance as a risk measurement, this paper investigates the effect of risk attitude for the remanufacturer and the retailer on remanufacturing quantity, expected profit and coordination activities.
On the basis of risk-neutral and risk-averse criteria, we develop two objectives for our SCND problem.
A stochastic MPMOTP model is proposed for this uncertainty-averse TRANSCO planning, incorporated with the following objectives: 1) maximize the social benefit via CO2 reduction, 2) minimize the TRANSCO cost of energy purchase and network expansion, 3) maximize the profit of power delivery.
Since the objective test had been formulated by foreign judges without consideration of Singapore's local conditions, the Government was averse to the idea of allowing the objective test to shape the development of Singapore law on matters of national security under the ISA.
Short time horizons made donors risk-averse, as they had to achieve certain objectives within a limited period of time.
It is clear US officials are not averse to pressurising, even bullying, third countries to attain their policy objectives.
When a for-profit online auction company such as eBay creates an insurance program, its objective is to maximize the satisfaction of risk averse customers at a minimum cost for the insurance systems that manages risk.
Usually, the performance attributes that correspond to the primary objectives of the project should be assigned a risk-averse value.
The result shows the economic advantage of using the risk-averse stochastic programming approach over the deterministic approaches while satisfying environmental objectives.
