’risk-sensitive’ refers here to the use of the Optimized Certainty Equivalent as a means to measure expectation and risk … procedures are explained. We present both the theory when the Optimized Certainty Equivalent is applied recursively as well as …

replaced with their certainty equivalent. We also provide a parametric example where feasible and incentive compatible …

the certainty equivalent method and for the risk premium method. In a concrete and valuation example, the simulation … transfer to concrete valuation cases in practice. It is shown that the certainty equivalent method and the risk premium method …

the certainty equivalent method and for the risk premium method. In a concrete and valuation example, the simulation … transfer to concrete valuation cases in practice. It is shown that the certainty equivalent method and the risk premium method …