considers both the derivative's farm-specific risk reduction capacity and the individual farmer's risk acceptance. Applying it …Since the mid-nineties, agricultural economists discuss the suitability of "weather derivatives" as hedging instruments …, weather derivative markets for the agricultural sector are still in their infancy all-over the world. Some economists …

hedging decisions within the prospect theory. We illustrate our general considerations with a thoroughly worked out example. …The prospect theory is one of the most popular decision-making theories. It is based on the S-shaped utility function …, unlike the von Neumann and Morgenstern (NM) theory, which is based on the concave utility function. The S-shape brings in …

these instruments in the banking in- dustry which is heavily exposed to credit risk. However, while recent literature mainly …

This paper analyzes optimal hedging of a tradable risk (e.g. price risk or exchange rate risk) with forward contracts … noise, cross hedging and speculating on the real risk premium are conflicting objectives; the level of relative risk … in the presence of untradable inflation risk. Utility is defined over real wealth. Optimal forward positions are derived …

The optimum behavior of a competitive risk-averse international trader who supplies or demands commodities invoiced in … foreign currency is examined when his profits are subject to several forms of risk: production, domestic cost, the exchange … and the double hedging theorems are derived. The behavior of the same firm with and without complete markets is compared …

main aim is to minimize this shortfall risk by making use of results from bsde theory. … possible at time T if the initial capital is not sufficient to hedge xc. This introduces a new risk into the market and our …

exogenous risk and delegation. That is, we show that only if exogenous risk is sufficiently large, the risk-neutral principal … may prefer to delegate authority over decisions to the risk-averse agent. Intuitively, for incentive reasons, the … principal may optimally want to allow the agent to reduce his risk exposure. Nevertheless, even endogenous risk may be higher …

to meet their financial obligations. It is based on classical financial-statement approach, a direct inclusion of risk …

In the context of principal-agent theory risk is largely seen as a source that causes inefficiencies and lowers … tournament framework that risk in terms of chance is beneficial from the point of view of a profit maximizing principal who …