Risk Analysis 101: fooled by local robustness … again!

This article explains, again, why radius of stability models, such as info-gap’s robustness model, are models of local robustness and why they are therefore unsuitable for the treatment of severe uncertainty. Citation Working Paper SM-12-2, Department of Mathematics and Statistics, The University of Melbourne, Melbourne, Victoria, Australia. Article Download View Risk Analysis 101: fooled by … Read more

Risk Analysis 101 — Robust-Optimization: the elephant in the robust-satisficing room

In 2001, info-gap decision theory re-invented the then 40-year old model of local robustness, known universally as radius of stability (circa 1960). Since then, this model of local robustness has been promoted by info-gap scholars as a reliable tool for the management of a severe uncertainty that is characterized by a vast (e.g. unbounded) uncertainty … Read more