Arbeitspapier
The firm under regret aversion
We examine the economic behavior of the regret-averse firm under price uncertainty. We show that the global and marginal effects of price uncertainty on production are both positive (negative) when regret aversion prevails if the random output price is positively (negatively) skewed. In this case, high (low) output prices are much more likely to be seen than low (high) output prices. To minimize regret, the firm is induced to raise (lower) its output optimal level. The skewness of the price distribution as such plays a pivotal role in determining the regret-averse firm's production decision.
- Sprache
-
Englisch
- Erschienen in
-
Series: CEPIE Working Paper ; No. 03/17
- 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 theory
Skewness
Uncertainty
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Broll, Udo
Welzel, Peter
Wong, Kit Pong
- Ereignis
-
Veröffentlichung
- (wer)
-
Technische Universität Dresden, Center of Public and International Economics (CEPIE)
- (wo)
-
Dresden
- (wann)
-
2017
- Handle
- URN
-
urn:nbn:de:bsz:14-qucosa-219229
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Broll, Udo
- Welzel, Peter
- Wong, Kit Pong
- Technische Universität Dresden, Center of Public and International Economics (CEPIE)
Entstanden
- 2017
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