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HomeApplied Mechanics and MaterialsApplied Mechanics and Materials Vol. 555Model of Assessing the Impact of Rare Events in...

Model of Assessing the Impact of Rare Events in Aviation Security Investments Projects

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Abstract:

The problem of optimal dynamic allocation of resources in security should be built in such a manner to include the impact assessment of rare events, such as natural or asymmetric extreme events. This paper presents a model for the analysis of investment situations that involves real options with multiple sources of jump risk and identification of management solutions that increase the value of the investment opportunity using Wiener processes and Poisson distribution. The results are solutions for improved decision-making in aviation systems.

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Periodical:

Applied Mechanics and Materials (Volume 555)

Pages:

11-17

DOI:

https://doi.org/10.4028/www.scientific.net/AMM.555.11

Citation:

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Online since:

June 2014

Authors:

Catalin Cioaca*, Mircea Boşcoianu

Keywords:

Aviation, Brownian Motion, Jumps, Poisson Process, Security Investments

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© 2014 Trans Tech Publications Ltd. All Rights Reserved

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* - Corresponding Author

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