Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/285069 
Title (translated): 
Comparación del comportamiento de producción de empresas aversas al arrepentimiento y aversas al riesgo
Year of Publication: 
2019
Citation: 
[Journal:] Estudios de Economía [ISSN:] 0718-5286 [Volume:] 46 [Issue:] 2 [Year:] 2019 [Pages:] 157-171
Publisher: 
Universidad de Chile, Departamento de Economía, Santiago de Chile
Abstract: 
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.
Subjects: 
Production
regret aversion
risk aversion
uncertainty
JEL: 
D21
D24
D81
Creative Commons License: 
cc-by-nc-sa Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.