Risk aversion index

Table 2. Exonomic optimization of the crest level in the model by Van Dantzig for different values of the risk aversion index.

It is clear from Table 2 and Fig. 7 that a higher value of the index k results in a higher crest level, which gives a larger amoimt of total ejq)ected costs, but also gives a much lower flood probabiUty and consequently a much lower flood risk. This illustrates the concept of risk aversion by investing a little more than the lowest... 

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