Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128746
Authors: 
Kaniovski, Serguei
Year of Publication: 
2003
Series/Report no.: 
WIFO Working Papers 196
Abstract: 
This paper analyzes optimizing decisions of a monopolist under uncertainty. The aspiration model directly accounts for asymmetric risk preferences with respect to downside risk. The optimal output (price) of a risk-averse monopolist facing marginal cost uncertainty will not exceed that of his risk-neutral counterpart, and will be lower (higher) for realistic aspiration levels. This result is consistent with studies conducted in the traditional expected utility framework.
Subjects: 
Aspiration
Downside Risk
Monopoly
Risk-Aversion
JEL: 
D81
L12
L21
Document Type: 
Working Paper

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