Broll, Udo; Welzel, Peter; Wong, Kit Pong - In: Decisions in Economics and Finance 47 (2023) 1, pp. 259-273
This paper examines the production and hedging decisions of the competitive firm under price uncertainty when the firm is not only risk averse but also regret averse. Regret-averse preferences are characterized by a modified utility function that includes disutility from having chosen ex post...
