DOI: https://doi.org/10.36719/2663-4619/114/245-249
Rahima Sadigova
Nakhchivan State University
https://orcid.org/0009-0008-8764-0276
rehimesadiqova41@gmail.com
The Role of Bernoulli’s Formula in Economics
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.
Keywords: Bernoulli's formula, risk management, expected benefit theory, decision-making process, ınvestment strategies, financial markets, game theory, macroeconomics