Risk aversion in maintenance : overmaintenance and the principal-agent problem
(2005)
Journal Article
Baker, R. (2005). Risk aversion in maintenance : overmaintenance and the principal-agent problem. IMA Journal of Management Mathematics, 17(2), 99-113. https://doi.org/10.1093/imaman/dpi028
The concept of a risk-averse maintenance policy is introduced, and two approaches to modelling it are discussed, the first being via utility functions, and the second via inflation of the costs of unscheduled failures. After introducing a general met... Read More about Risk aversion in maintenance : overmaintenance and the principal-agent problem.