The Role of Bernoulli’s Formula in Economics

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The Role of Bernoulli’s Formula in Economics

Journal Title: Scientific Work - Year 2025, Vol 19, Issue 4

Abstract

The Bernoulli’s formula is used in economics and finance to manage risk, develop investment strategies, and improve decision-making processes. Within the framework of the expected benefit theory, investors seek to maximize not only income, but also utility. In the financial sector, banks and investors use the Bernoulli’s formula in risk assessment, insurance, and portfolio management. In the transport and infrastructure sectors, it is applied to increase efficiency. This principle plays a key role in game theory and in formulating optimal strategies in competitive markets. In general, the Bernoulli’s formula helps to make rational economic decisions and effectively manage risks.

Authors and Affiliations

Rahima Sadigova

Keywords

Keywords: Bernoulli's formula risk management expected benefit theory decision-making process ınvestment strategies financial markets game theory macroeconomics

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EP ID EP766163
DOI 10.36719/2663-4619/114/245-249
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