Comparison of the production behavior of regret-averse and purely risk-averse firms

Artikel

Previous studies focused on the comparison of the optimal output levels of regret- averse firms under uncertainty and 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-averse counterparts and surely produce less than firms under certainty. Thereafter, we give sufficient conditions to ensure the regret-averse firms to produce more than the purely risk-averse counterparts and study the comparative statics of the optimal production. We also develop properties of regret-aversion on production.

Angaben zum Objekt

• Weitere Titel: Comparación del comportamiento de producción de empresas aversas al arrepentimiento y aversas al riesgo
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Estudios de Economía ; ISSN: 0718-5286 ; Volume: 46 ; Year: 2019 ; Issue: 2 ; Pages: 157-171

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Behavior: Theory ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Criteria for Decision-Making under Risk and Uncertainty
• Thema: Production ; regret aversion ; risk aversion ; uncertainty

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Guo, Xu ; Wong, Wing Keung
• Ereignis: Veröffentlichung
• (wer): Universidad de Chile, Departamento de Economía
• (wo): Santiago de Chile
• (wann): 2019

Weitere Informationen

• Handle: http://hdl.handle.net/10419/285069
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ