(Harmonized System 10- digit) bilateral exports to the United States. The patterns in the data are consistent with the theory. The …

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 …,sigma)-preference. In contrast to the literature our findings show that the production under uncertainty can be larger than in the certainty …