aversive

Examples of aversive in the following topics:

• Risk Aversion

  • Risk aversion describes how people react to conditions of uncertainty and has implications for investment decisions.
  • Risk aversion can be applied to many different situations, including investments, lotteries, and other situations with uncertain outcomes.
  • Because organizations are composed of individuals, risk aversion at the individual level plays a role in organizational decision making.
  • People fall under different categories of risk aversion.
  • A risk-averse, or risk avoiding person would take the guaranteed payment of 50, or even less than that (40 or 30) depending on how risk averse they are.

• Risk and Return Considerations

  • Risk aversion also plays an important role in determining a firm's required return on an investment.
  • Risk aversion is a concept based on the behavior of firms and investors while exposed to uncertainty to attempt to reduce that uncertainty.
  • Risk aversion is the reluctance to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, expected payoff.
  • For example, a risk-averse investor might choose to put his or her money into a bank account with a low but guaranteed interest rate, rather than into a stock that may have high expected returns, but also involves a chance of losing value.
  • Risk aversion can be thought of as having three levels:

• Measuring Risk

  • Risk aversion also plays an important role in determining a firm's required return on an investment.
  • Risk aversion is a concept based on the behavior of firms and investors while exposed to uncertainty to attempt to reduce that uncertainty.
  • Risk aversion is the reluctance to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, expected payoff.
  • For example, a risk-averse investor might choose to put his or her money into a bank account with a low but guaranteed interest rate, rather than into a stock that may have high expected returns, but also involves a chance of losing value.
  • Risk aversion can be thought of as having three levels:

• Behavior Modification

  • In recent years, the concept of punishment has had many critics, though these criticisms tend not to apply to negative punishment (time-outs) and usually apply to the addition of some aversive event.
  • In clinical settings, positive punishment is usually restricted to using a spray bottle filled with water as an aversive event.
  • When misused, more aversive punishment can lead to affective (emotional) disorders, as well as to the receiver of the punishment increasingly trying to avoid the punishment (i.e., "not get caught").

• Determine a Course

  • Prospect theory is based on the notion that people think about decisions in terms of potential gains and losses and tend to be more averse to losses than they are favorable to gains.

• Introduction Governments and Open Source

  • Government agencies tend to be unusually risk-averse.
  • This need for publicity is the complement of being risk-averse: elected officials and those who work for them understand that most people aren't paying much attention most of the time — therefore, those who work in government want to ensure that in the few moments when people are paying attention, they see something good.

• Optimization

  • Also, agents are often modeled as being risk-averse, thereby preferring to avoid risk.

• Moving West

  • Despite the Jeffersonian aversion and mistrust of federal power, the government bore more heavily in the West than any other region, and made possible the fulfillment of Manifest Destiny.

• Behavioral Economics: Irrational Actions

  • The evaluation stage evaluated risky alternatives through the study of dependence, loss aversion, non-linear probability weighting, and sensitivity to gains and losses.

• Managers, Shareholders, and Bondholders

  • Managers may also be shareholders and reap the profits of more risky strategies or may prefer risk-averse empire-building projects.