Narrow search
Showing 1 - 10 of 68
Cover Image
The firm under regret aversion
Broll, Udo; Welzel, Peter; Kit, Pong Wong - 2017
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 output price is positively (negatively) skewed. In this...
Persistent link: https://www.econbiz.de/10011610117
Cover Image
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,sigma)-preference. In contrast to the literature our findings show...
Persistent link: https://www.econbiz.de/10003841926
Cover Image
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...
Persistent link: https://www.econbiz.de/10003980000
Cover Image
The firm under uncertainty : real and financial decisions
Broll, Udo; Kit, Pong Wong - In: Decisions in economics and finance : DEF ; a journal of … 36 (2013) 2, pp. 125-136
Persistent link: https://www.econbiz.de/10010195624
Cover Image
Nachfrageunsicherheit und Risikopolitik im Duopol
Broll, Udo; Pelster, Matthias; Wahl, Jack E. - 2012
The paper studies an duopoly with risk averse firms exposed to demand uncertainty. A risk sharing market is introduced …
Persistent link: https://www.econbiz.de/10009567543
Cover Image
The firm under uncertainty : capital structure and background risk
Broll, Udo; Wong, Keith K.P. - 2010
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 minimize the weighted average cost of capital, irrespective of the risk …. When the background risk is either additive or multiplicative, we provide reasonable restrictions on the firm's preferences …
Persistent link: https://www.econbiz.de/10003971039
Cover Image
Export investment under uncertainty : a mean-variance decision analysis for Indian manufacturing exporters
Mukherjee, Subhadip; Mukherjee, Soumyatanu; Mishra, Tapas; … - 2019
Persistent link: https://www.econbiz.de/10012602134
Cover Image
Prospect Theory and Hedging Risks
Broll, Udo - 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...
Persistent link: https://www.econbiz.de/10013142328
Cover Image
The Firm Under Uncertainty : Capital Structure and Background Risk
Broll, Udo - 2010
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 minimize the weighted average cost of capital, irrespective of the risk …. When the background risk is either additive or multiplicative, we provide reasonable restrictions on the firm's preferences …
Persistent link: https://www.econbiz.de/10013143570
Cover Image
The banking firm under ambiguity aversion
Broll, Udo; Welzel, Peter; Kit, Pong Wong - 2016
We examine risk taking when the bank's preferences exhibit smooth ambiguity aversion. Ambiguity is modeled by a second … return risk. Ambiguity preferences are modeled by the (second-order) expectation of a concave transformation of the (first …-order) expected utility of profit conditional on each plausible subjective distribution of the return risk. Within this framework, the …
Persistent link: https://www.econbiz.de/10011541280