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 …

We develop a dynamic model of firm investment under uncertainty that captures firms' risk attitude using quantile …-quantile of its value next period. In our framework, τ ∈ (0, 1) parametrizes the firm's attitude toward downside risk. The model … value of future marginal profits -- investment depends directly on the firm's risk attitude. We further integrate our model …

hydroelectricity producers are risk averse and face demand uncertainty. In each type of market structure we analytically determine the … electricity prices. In the oligopolistic case with symmetric risk aversion coefficient, we determine the conditions under which … (storage) in its competitor’s dams. When there is asymmetry of the risk aversion coefficient, the firm’s hydroelectricity …

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

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

difficulties identified with IAMs, the choice of the risk aversion parameter and the underestimation of damages, are also directly …