## Abstract This note examines the effect of loss aversion on the futures trading behavior of a short hedger. Using a modified constant‐absolute‐risk‐aversion utility function, I show that loss aversion has no effect in an unbiased futures market. It has different, predictable impacts when the futu
Probability weighting and loss aversion in futures hedging
✍ Scribed by Fabio Mattos; Philip Garcia; Joost M.E. Pennings
- Book ID
- 116482317
- Publisher
- Elsevier Science
- Year
- 2008
- Tongue
- English
- Weight
- 387 KB
- Volume
- 11
- Category
- Article
- ISSN
- 1386-4181
No coin nor oath required. For personal study only.
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