Sévi, Benoît - In: Recherches économiques de Louvain 73 (2007) 2, pp. 217-228
This paper studies the optimal hedging policy of a risk-averse firm facing both price and quantity uncertainties. In an expected utility framework, prudence in the Kimball?s (1990) sense is shown to play a major role in the characterization of the optimal hedging policy. More surprising is the...
