We examine the economic behavior of the regret-averse firm under price uncertainty. We show that the global and … marginal effects of price uncertainty on production are both positive (negative) when regret aversion prevails if the random …

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 …Within the prospect theory the paper examines production and hedging decisions of a competitive firm under price …

. -- Prospect theory ; mean-variance model ; indifference curve ; price uncertainty ; hedging …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 …

The paper studies an duopoly with risk averse firms exposed to demand uncertainty. A risk sharing market is introduced …

uncertainty. The firm faces additional sources of uncertainty that are aggregated into a background risk. We show that the firm …. -- Background risk ; Capital structure ; Price uncertainty … always chooses its optimal debt-equity ratio to minimize the weighted average cost of capital, irrespective of the risk …

When measuring market risk, credit institutions and Alternative Investment Fund Managers may deviate from equally … weighting historical data in their Value-at-Risk calculation and instead use an exponential time series weighting. The use of … exponential weighting in the Value-at-Risk calculation is very popular because it takes into account changes in market volatility …