Optimal output for the regret-averse competitive firm under price uncertainty

Martín Egozcue, Xu Guo, Wing Keung Wong

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

We study the optimal output of a competitive firm under price uncertainty. Instead of assuming a risk-averse firm, we assume that the firm is regret-averse. We find that optimal output under uncertainty would be lower than under certainty. We also prove that optimal output could increase or decrease when the regret factor varies.

Original languageEnglish (US)
Pages (from-to)279-295
Number of pages17
JournalEurasian Economic Review
Volume5
Issue number2
DOIs
StatePublished - Dec 1 2015

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

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