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

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 that the production under uncertainty can be larger than in the certainty … theory, mean-variance model, price uncertainty …

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 that the production under uncertainty can be larger than in the certainty …

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 …