Arbeitspapier
Risk-Averse Monopolist with Aspiration
This paper analyzes optimizing decisions of a monopolist under uncertainty. The aspiration model directly accounts for asymmetric risk preferences with respect to downside risk. The optimal output (price) of a risk-averse monopolist facing marginal cost uncertainty will not exceed that of his risk-neutral counterpart, and will be lower (higher) for realistic aspiration levels. This result is consistent with studies conducted in the traditional expected utility framework.
- Language
-
Englisch
- Bibliographic citation
-
Series: WIFO Working Papers ; No. 196
- Classification
-
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Monopoly; Monopolization Strategies
Business Objectives of the Firm
- Subject
-
Aspiration
Downside Risk
Monopoly
Risk-Aversion
Risikoaversion
Monopol
Entscheidung unter Unsicherheit
- Event
-
Geistige Schöpfung
- (who)
-
Kaniovski, Serguei
- Event
-
Veröffentlichung
- (who)
-
Austrian Institute of Economic Research (WIFO)
- (where)
-
Vienna
- (when)
-
2003
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kaniovski, Serguei
- Austrian Institute of Economic Research (WIFO)
Time of origin
- 2003
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