We develop a set of theoretical models to show how differences in real estate developers' optimism about market demand … realization of stochastic demand. Our analysis shows that optimistic developers construct more housing and hold more inventories … when facing higher demand uncertainty. Developers' overconfidence creates value in terms of optimal profit and market share …

The paper studies an duopoly with risk averse firms exposed to demand uncertainty. A risk sharing market is introduced …Die vorliegende Arbeit untersucht ein Duopol bei unsicherer Nachfrage unter Risikoaversion. Die Produktion der gesamten …

questions, we study the capital-raising problem of an entrepreneur of an innovative product, when future demand is uncertain and …

We analyze the effect of price caps on equilibrium production and welfare in oligopoly under demand uncertainty. We … price cap and show that typically, the optimal price cap is bounded away from marginal cost. -- Demand uncertainty, Cournot …

product differentiation into account. We study the impact of capacity costs, demand uncertainty, and vertical and horizontal …

We analyze a Hotelling location-then-price duopoly game under demand uncertainty with uniformly distributed consumers …

This paper studies two-part tariffs with explicit consideration of cost uncertainty and risk aversion. It finds that … firms charge a risk premium over expected marginal cost for each unit they sell. This pricing rule is socially optimal if … and only if the modeled market is fully covered in equilibrium. A risk-averse monopoly tends to generate less aggregate …

future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not … are strong variations in demand. Moreover, we analyze the optimal nonlinear tariff. This tariff has a large flat part when …

We investigate cooperative investment in a new infrastructure and how it interacts with access obligations and demand …