Open Access
American Research Journal of Business and Management
ISSN (Online): 2379-1047
DOI: 10.46568/arjbm
Decisions Under Risk and Uncertainty
Abstract
Decision-making under risk and uncertainty is a critical aspect of various disciplines, including economics, psychology, and management. This paper explores the theoretical foundations, models, and practical applications of decision making processes in uncertain environments. By examining historical developments, current methodologies, and future directions, this paper aims to provide a comprehensive understanding of how individuals and organizations navigate risk and uncertainty. The analysis includes an overview of expected utility theory, prospect theory, and behavioral approaches, highlighting their contributions and limitations. Practical implications for risk management and policy-making are also discussed.
