This paper studies two-part tariffs with explicit consideration of cost uncertainty and risk aversion. It finds that … firms charge a risk premium over expected marginal cost for each unit they sell. This pricing rule is socially optimal if … and only if the modeled market is fully covered in equilibrium. A risk-averse monopoly tends to generate less aggregate …

The paper studies an duopoly with risk averse firms exposed to demand uncertainty. A risk sharing market is introduced …

-)variance of power plant profits. If investors are risk-averse, these differ- ences lead to divergent investment portfolios …, breaking the equivalence of price- and quantity-based policy instruments under risk-neutrality. Using the European power sector … with increasing risk aversion. …

regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation …

firms under certainty. This paper extends the theory by further investigating the effects of regret-aversion on production …. We compare the optimal output levels of regret-averse firms with purely risk- averse firms under uncertainty and firms … under certainty. We first show that the linear-regret firms will surely produce more than their purely risk …

investors, ambiguity aversion generates strong home bias in equity holdings, regardless of beliefs in the CAPM or risk aversion …. Results become stronger under regime-switching investment opportunities …

are (1) the model can generate a high and volatile equity premium while a low and smooth risk-free rate, (2) agents … volatility clusterng and persistence; and (3) Bayesian learning itself is unable to generate a significant and positive risk … premium once time variation in investment opportunities is accounted for; in most cases, Bayesian learning lowers the …