Uncertainty and risk aversion
Optimal regime switching under risk aversion and uncertainty
... Third, we provide managerial insights for investment and operational decisions based on analytical and numerical results. We proceed by discussing some related work in Section 2 and introduce assumptions and nota- tion ...
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Sequential Investment in Emerging Technologies under Risk Aversion and Policy Uncertainty
... price uncertainty and the level of risk aversion increase, whether the sudden provision of a subsidy or the potential to replace equipment with more efficient ones mitigates the impact of price ...
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Investment decision making under uncertainty: the impact of risk aversion, operational flexibility, and competition
... under uncertainty by examining how duopolistic com- petition affects the entry of a risk-averse ...are risk averse and hold an option each to invest in a project that yields stochastic ...and ...
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Feasible sets, comparative risk aversion, and comparative uncertainty aversion in bargaining
... comparative risk aversion results for monotonic bargaining solutions hold for the SEU case as ...course, uncertainty does not play a role in the SEU ...
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Duopolistic competition under risk aversion and uncertainty
... low uncertainty, r , and under high uncertainty, r 0 ...increased uncertainty raises the required entry threshold of the follower by more than that of the ...higher uncertainty, she enjoys ...
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Duopolistic Competition under Risk Aversion and Uncertainty
... low uncertainty, r , and under high uncertainty, r 0 ...increased uncertainty raises the required entry threshold of the follower by more than that of the ...higher uncertainty, she enjoys ...
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Risk aversion heterogeneity and the investment-uncertainty relationship
... relative risk aver- sion, and — as in Coen-Pirani (2005) — they can trade safe ...in risk enhances the returns on capital in the tradition of Hartman (1972) and Abel (1983), a higher uncertainty ...
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Strategic Technology Switching under Risk Aversion and Uncertainty
... technological uncertainty, but also strategic interactions due to ...exhibit risk aversion, since alternative energy technologies entail risk that cannot be ...technological uncertainty ...
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Optimal Regime Switching under Risk Aversion and Uncertainty
... economic uncertainty, re- luctance towards technological change may have devastating consequences for the viability of private firms (Hoppe, 2002; Bos et ...exhibit risk aversion, which hobbles any ...
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Risk aversion, intertemporal substitution, and the aggregate investment-uncertainty relationship
... relative risk aversion are constrained to be one the reciprocal of the ...aggregate uncertainty is negative (see Table ...the risk aversion e¤ ect and an increase in uncertainty ...
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In uncertainty we trust: a median voter model with risk aversion
... voter risk aversion towards uncertainty translates into incumbency advantage and enables incumbents to legislate farther away from their constituents’ interests or to pursue ideological ...
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Why Uncertainty Matters - Discounting under Intertemporal Risk Aversion and Ambiguity
... Intertemporal Risk Aversion The standard model of the previous section implicitly assumes that a decision maker’s aversion to risk coincides with his aversion to intertemporal ...
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Does Risk Aversion Accelerate Optimal Forest Rotation under Uncertainty?
... Value Uncertainty In this section we establish the following ...relative risk aversion accelerates ...on risk aversion is also ...
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Scale-Invariant Uncertainty-Averse Preferences and Source-Dependent Constant Relative Risk Aversion
... are risk/ambiguity averse and scale invariant (or ...Ambiguity aversion means aversion to Knightian uncertainty, as is commonly motivated by the experiments of Ellsberg ...relative risk ...
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Business corruption, uncertainty and risk aversion
... The presence of business-corruption in a market provokes firms to make choices between legal business approaches and illegal bribery. The outcome of a chosen strategy will usually be uncertain at the time the decision is ...
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Optimal Selection of Distributed Energy Resources under Uncertainty and Risk Aversion
... the risk exposure of a hypothetical consumer with CHP and study ways to mitigate it, we implement a case study using German ...of risk aversion is captured by varying the B ...
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Optimal Operation of Combined Heat and Power under Uncertainty and Risk Aversion
... against risk as a result of flawed reward systems within com- ...the risk that investors in CHP face, we formulate a multi- stage, mean-risk optimisation model for the medium-term management of a DG ...
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Earnings Uncertainty, risk-Aversion and Homeownership
... income uncertainty on the probability of homeownership in Germany and ...of risk attitudes in the housing tenure decisions that also allow us to introduce the concept of “skewness affection” as a relevant ...
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A Model of Investment under Uncertainty with Time to Build, Market Incompleteness and Risk Aversion
... pre-investment uncertainty associated with the project is all attributable to the systematic external cost ...the uncertainty associated with external costs does not change because of the act of exercising ...
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Estimating Aversion to Uncertainty
... be risk neutral, then we can directly infer the subjective probability from the report of the ...of risk aversion will suffice, under the LSR, to generate interior responses, so we assume that the ...
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