of the optimal production and compare the results of using different disappointment-averse and risk-averse models. We …This paper uses four different disappointment models to examine the production decision of the competitive firm under … uncertainty when the firm is not only risk-averse, but also disappointment-averse. We show the conditions under which the …

channels. Irreversibility, financing constraints and risk aversion make a negative relationship between uncertainty and … attractive. Therefore, risk may also constitute an incentive to invest. The net effect is theoretically indeterminate. The … roughly 75% of the total turnover of the west German manufacturing sector. The sample used for estimation contains 6,745 firms …

marginal effects of price uncertainty on production are both positive (negative) when regret aversion prevails if the random … of the price distribution as such plays a pivotal role in determining the regret-averse firm's production decision. …

The paper studies the effect of tax asymmetry on (risk neutral) competitive firm's production and optimal hedging … show that: (a) in the absence of risk sharing arrangements asymmetry in taxation lowers the firm's optimal output compared … to the symmetric tax case, (b) when risk sharing tools become available the firm's output increases; moreover, in this …

-adjustment costs in an inflationary environment. The model nests both the original menu-cost model that allows production to be …

Our study examines the behavior of a risk-averse investor who faces two sources of uncertainty: a random asset price … and inflation risk. Both sources of uncertainty make it difficult to stabilize consumption over time. However, investors … can enter risk-sharing markets, such as futures markets, to manage these risks. We develop a dynamic risk management model …