novel notion of preference for hedging that applies to both objective lotteries and uncertain acts. We show that this axiom … hedging is not suf?cient to guarantee Ellsberg-like behavior if the agent violates expected utility for objective lotteries …

setting. We find that we cannot reject that the reversal-of-order axiom holds. This suggests that hedging could still be … possible when carefully implementing RLIS. However, we also find low levels of ambiguity hedging across the board, suggesting … the existence of the hedging possibility does not necessarily represent a common problem in ambiguity experiments. …

This paper analyzes optimal hedging of a tradable risk (e.g. price risk or exchange rate risk) with forward contracts … noise, cross hedging and speculating on the real risk premium are conflicting objectives; the level of relative risk …