A SMOOTH AMBIGUITY MODEL OF THE COMPETITIVE FIRM

2015 ◽  
Vol 67 (S1) ◽  
pp. S97-S110 ◽  
Author(s):  
Kit Pong Wong
Keyword(s):  
Smooth Ambiguity Model ◽  
Competitive Firm

scholarly journals Optimal output for the regret-averse competitive firm under price uncertainty

2015 ◽  
Vol 5 (2) ◽  
pp. 279-295 ◽  
Author(s):  
Martín Egozcue ◽  
Xu Guo ◽  
Wing-Keung Wong
Keyword(s):  
Price Uncertainty ◽  
Optimal Output ◽  
Competitive Firm

scholarly journals Eliciting ambiguity aversion in unknown and in compound lotteries: a smooth ambiguity model experimental study

2014 ◽  
Vol 77 (4) ◽  
pp. 485-530 ◽  
Author(s):  
Giuseppe Attanasi ◽  
Christian Gollier ◽  
Aldo Montesano ◽  
Noemi Pace
Keyword(s):  
Experimental Study ◽  
Ambiguity Aversion ◽  
Smooth Ambiguity Model

AN ECONOMIC PREMIUM PRINCIPLE UNDER THE DUAL THEORY OF THE SMOOTH AMBIGUITY MODEL

2017 ◽  
Vol 47 (3) ◽  
pp. 787-801 ◽  
Author(s):  
Yoichiro Fujii ◽  
Hideki Iwaki ◽  
Yusuke Osaki
Keyword(s):  
Ambiguity Aversion ◽  
Sufficient Conditions ◽  
Exchange Economy ◽  
Comparative Statics ◽  
Ambiguous Loss ◽  
Dual Theory ◽  
Demand For Insurance ◽  
Smooth Ambiguity Model ◽  
Pure Exchange ◽  
Pure Exchange Economy

AbstractThis study considers a pure exchange economy with insurance against ambiguous loss. Ambiguity preferences are represented by the dual theory of the smooth ambiguity model from Iwaki and Osaki (2014). The economic premium principle of Bühlmann (1980, 1984) is extended to ambiguity. We also perform some comparative statics and present sufficient conditions under which an increase in ambiguity aversion increases insurance demand and insurance premiums. Contrary to the result in Tsanakas and Christofides (2006), the optimal demand for insurance is not always comonotonic, because our model permits an economy comprising both ambiguity averse and ambiguity loving agents.

scholarly journals Nonrobustness of Dynamic Dual Models of the U.S. Dairy Industry

1989 ◽  
Vol 18 (1) ◽  
pp. 18-25 ◽  
Author(s):  
Wayne H. Howard ◽  
C. Richard Shumway
Keyword(s):  
Technological Change ◽  
Functional Form ◽  
Dairy Industry ◽  
Dual Model ◽  
Competitive Firm ◽  
Functional Forms ◽  
Quality Indexes ◽  
Dual Models ◽  
The U.S

The robustness of dynamic dual model results across functional forms is examined for the U.S. dairy industry. Modified generalized Leontief (GL) and normalized quadratic (NQ) functional forms are compared by examining their consistency with properties of the competitive firm, estimated rates of adjustment for cows and labor, tests of technological change, and elasticities. Homogeneity and symmetry are maintained in both models. Convexity is not rejected by the GL and is not seriously violated by the NQ. Absence of technological change is rejected by both models, but quality indexes on labor and cows fully embody technological change occurring within labor and cows in the NQ but not in the GL. Policy-relevant elasticities differ greatly between the functional forms. Dynamic dual models are found to be non-robust in important ways to choice of functional form.

scholarly journals HEDGING AND THE COMPETITIVE FIRM UNDER AMBIGUOUS PRICE AND BACKGROUND RISK

2016 ◽  
Vol 69 (4) ◽  
pp. E1-E11 ◽  
Author(s):  
Yusuke Osaki ◽  
Kit Pong Wong ◽  
Long Yi
Keyword(s):  
Background Risk ◽  
Competitive Firm
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