𝔖 Bobbio Scriptorium
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Production under uncertainty

✍ Scribed by Yakov Amihud; Dietrich Fischer


Book ID
112506001
Publisher
Springer Vienna
Year
1975
Tongue
English
Weight
584 KB
Volume
35
Category
Article
ISSN
1617-7134

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This article introduces Knightian uncertainty into the production and futures hedging framework. The firm has imprecise information about the probability density function of spot or futures prices in the future. Decision-making under such scenario follows the "max-min" principle. It is shown that in