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Prospect theory and two moment model: the firm under price uncertainty

Broll, Udo; Egozcue, Martin; Wong, Wing Keung - 2009

Within the prospect theory the paper examines production and hedging decisions of a competitive firm under price … uncertainty. We consider the prospect theory for the firm's utility function in the two moment model known as (mu … theory, mean-variance model, price uncertainty …

Persistent link: https://www.econbiz.de/10003841926

Prospect theory and hedging risks

Broll, Udo; Egozcue, Martín; Wong, Wing Keung; … - 2010

The prospect theory is one of the most popular decision-making theories. It is based on the S-shaped utility function …, unlike the von Neumann and Morgenstern (NM) theory, which is based on the concave utility function. The S-shape brings in … mathematical challenges: simple extensions and generalizations of NM theory into the prospect theory cannot be frequently achieved …

Persistent link: https://www.econbiz.de/10003980000

Regional investment under uncertain costs of location

Broll, Udo; Roldán-Ponce, Antonio; Wahl, Jack E. - 2012

Due to globalization competitive firms face increasing economic opportunities for locating their activities in countries, regions and cities that provide the best business environment for their specific needs. In our study we focus on the impact of economic risk and risk preferences upon...

Persistent link: https://www.econbiz.de/10009512741

Consumption and real exchange rates in professional forecasts

Devereux, Michael B.; Smith, Gregor W.; Yetman, James - In: Journal of international economics 86 (2012) 1, pp. 33-42

Persistent link: https://www.econbiz.de/10009622420

Consumption risk-sharing and the real exchange rate : why does the nominal exchange rate make such a difference?

Devereux, Michael B.; Hnatkovska, Viktoria - 2011

Persistent link: https://www.econbiz.de/10009268895

Information and output in agricultural markets : the role of market transparency

Ahlers, Christian; Broll, Udo; Eckwert, Bernhard - In: Agricultural and Food Economics : AFE 1 (2013), pp. 1-10

This study is concerned with the impact of changes in market transparency on agricultural production levels. Market transparency is of central importance in the agri-food system as it affects the degree of uncertainty farmers face when taking economic decisions. In our study, we endogenize...

Persistent link: https://www.econbiz.de/10010243077

Regional investment under uncertain costs of location

Broll, Udo; Roldán-Ponce, Antonio; Wahl, Jack E. - In: The annals of regional science : an international … 51 (2013) 3, pp. 645-657

Persistent link: https://www.econbiz.de/10010210967

Nachfrageunsicherheit und Risikopolitik im Duopol

Broll, Udo; Pelster, Matthias; Wahl, Jack E. - 2012

Die vorliegende Arbeit untersucht ein Duopol bei unsicherer Nachfrage unter Risikoaversion. Die Produktion der gesamten Industrie fällt durch die Einführung von Nachfrageunsicherheit; der Marktpreis steigt wegen des schwächeren Wettbewerbs. Damit ist die Veränderung des Gewinns und des...

Persistent link: https://www.econbiz.de/10009567543

Constant relative risk aversion and form equivalence classes

Battermann, Harald L.; Broll, Udo; Wahl, Jack E. - 1997

We derive a class of utility functions that are equivalent with respect to a well-defined functional form. We apply a general view of constant relative risk aversion to investigate on different equivalence relations. Then we compare our results with standard applications in economics and finance.

Persistent link: https://www.econbiz.de/10009675762

The firm under uncertainty : capital structure and background risk

Broll, Udo; Wong, Keith K.P. - 2010

This paper examines the interplay between the real and financial decisions of the competitive firm under output price uncertainty. The firm faces additional sources of uncertainty that are aggregated into a background risk. We show that the firm always chooses its optimal debt-equity ratio to...

Persistent link: https://www.econbiz.de/10003971039