low cost. Theorists have modeled futures contracts as tools for risk management, despite an extensive empirical literature … firms as using futures contracts to arbitrage, to minimize transaction costs, to substitute temporarily for merchandising … contracts. Because commercial firms tie their processing and storage decisions to the constellation of futures prices, futures …

This paper investigates corporate hedging under regret aversion. Regret-averse firms try to avoid deviations of their … hedging policy from the ex post best policy, an intuitive consideration if one has to justify one's decisions afterward. The … downside price risk than standard expected utility theory. In the profit region of the price distribution, however, regret …