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 …

Our study examines the behavior of a risk-averse investor who faces two sources of uncertainty: a random asset price … and inflation risk. Both sources of uncertainty make it difficult to stabilize consumption over time. However, investors … can enter risk-sharing markets, such as futures markets, to manage these risks. We develop a dynamic risk management model …