The prospect theory is one of the most popular decision-making theories. It is based on the S-shaped utility function … hedging decisions within the prospect theory. We illustrate our general considerations with a thoroughly worked out example …. -- Prospect theory ; mean-variance model ; indifference curve ; price uncertainty ; hedging …

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 … theory, mean-variance model, price uncertainty …