We consider a supply chain with two unreliable suppliers competing to supply one risk-averse buyer. We model the interaction among the supply chain participants as a Nash game among the suppliers, and Stackelberg games between the suppliers and the buyer. By introducing risk aversion, the buyer...

While the risk return trade-off theory suggests a positive relationship between the expected return and the conditional volatility, the volatility feedback theory implies a channel that allows the conditional volatility to negatively affect the expected return. We examine the effects of the risk...

While the risk return trade-off theory suggests a positive relationship between the expected return and the conditional volatility, the volatility feedback theory implies a channel that allows the conditional volatility to negatively affect the expected return. We examine the effects of the risk...