APPLICATION OF UTILITY THEORY IN THE STUDY OF ENTREPRENEURIAL RISKS

Abstract

Тhe article discusses entrepreneurial risks from the point of view of rational behavior, which is based on obtaining satisfaction from the implementation of the project. The main approaches to the definition of risk and the works of leading researchers devoted to the problem of entrepreneurial risk are considered. Common components of risk situations, regardless of the area of the project, are highlighted. Achieving high results depends on maintaining a balance of interests of all project participants. The author's classification of entrepreneurial risks on three levels is given: macro, meso, micro, which made it possible to determine the boundaries of interests of economic entities participating in the project. The economic category of usefulness (utility) for all project participants and the economic effect as they are interested in the implementation of the project, commensurate with the costs and the results obtained, are revealed. The model "Entrepreneur - Consumer - Counterparties" is proposed, which demonstrates the realization of the interests of economic entities, which is consistent subjectivism, expressed in preference, expectation, cognition with a common interest in obtaining utility. It is proposed to develop a decision-making model in the risk management system based on the presented axioms: orderly, transit, ranked preference of project options, taking into account the expected utility by all economic entities in order to reduce entrepreneurial risks.