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Risk aversion and self-insurance

โœ Scribed by Kangoh Lee


Publisher
Springer Vienna
Year
2010
Tongue
English
Weight
114 KB
Volume
101
Category
Article
ISSN
1617-7134

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๐Ÿ“œ SIMILAR VOLUMES


Risk aversion, disappointment aversion,
โœ Donald Lien; Yaqin Wang ๐Ÿ“‚ Article ๐Ÿ“… 2002 ๐Ÿ› John Wiley and Sons ๐ŸŒ English โš– 133 KB

## Abstract This article examines the effect of disappointment aversion on futures hedging. We incorporated a constantโ€absoluteโ€riskโ€aversion (CARA) utility function into the disappointmentโ€aversion framework of Gul (1991). It is shown that a more disappointmentโ€averse hedger will choose an optimal