- Authors
- Udo Broll
- Peter Welzel
- Kit Pong Wong
- title
- The Firm Under Regret Aversion
- Please use the following URL when quoting:
- https://nbn-resolving.org/urn:nbn:de:bsz:14-qucosa-219229
- Series
- CEPIE Working Paper
- multivolume_volume0
- 03/17
- issn
- 2510-1196
- Abstract (EN)
- 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.
- Keywords (DE)
- Produktion, Regret Theorie, Schiefe, Unsicherheit
- Keywords (EN)
- Production, Regret theory, Skewness, Uncertainty
- Classification (DDC)
- 330
- Classification (RVK)
- QC 000
- Standardizd keywords (GND)
- Volkswirtschaftslehre
- university_publisher
- Technische Universität Dresden, Dresden
- URN Qucosa
- urn:nbn:de:bsz:14-qucosa-219229
- Qucosa date of publication
- 27.02.2017
- Document type
- research_paper
- Document language
- English
- licence