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1 décembre 2019
- handle: 10670/1.zvsbrk
Ce document est lié à :
10.4067/S0718-52862019000200157
info:eu-repo/semantics/openAccess
Mots-clés
Production regret aversion risk aversion uncertaintySujets proches
Businesses Firms Companies Enterprises Business organizations Organizations, BusinessCiter ce document
Xu Guo et al., « Comparison of the production behavior of regret-averse and purely risk-averse firms », Estudios de economía, ID : 10670/1.zvsbrk
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Résumé
: Previous studies focused on the comparison of the optimal output levels of regret- averse firms under uncertainty and firms under certainty. This paper extends the theory by further investigating the effects of regret-aversion on production. We compare the optimal output levels of regret-averse firms with purely risk- averse firms under uncertainty and firms under certainty. We first show that the linear-regret firms will surely produce more than their purely risk-averse counterparts and surely produce less than firms under certainty. Thereafter, we give sufficient conditions to ensure the regret-averse firms to produce more than the purely risk-averse counterparts and study the comparative statics of the optimal production. We also develop properties of regret-aversion on production.