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Abstract

The premise of this paper is that risk visualization has the potential to reduce the seemingly irrational behavior of decision makers. In this context, we present a model that enhances our understanding of visualization and how it can be used to support risk based decision making. The contribution of our research stems from the fact that decision making scenarios in business are characterized by uncertainty and a lack of structure. The complexity inherent in such scenarios is manifested in the form of unavailability of information, too many alternatives, inability to quantify alternatives, or lack of knowledge of the payoff matrix. This is particularly prevalent in domains such as investment decision making. Rational decision making in such domains requires a careful assessment of the risk reward payoff matrix. However, individuals cope with such uncertainty by resorting to a variety of heuristics. Prior decision support models have been unsuccessful in dealing with complexity and nuances that have come to typify such heuristic based decision making.

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