RELAXING THE EXPECTED UTILITY HYPOTHESIS AND ENTRY/EXIT DECISIONS OF THE RISK-AVERSE FIRM
Israel Finkelshtain and
No 271061, 1990 Annual meeting, August 5-8, Vancouver, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)
A risk-aversion theory is formulated directly from a preference relation, rather than with a utility function representation. An example concerning insurance demand provides intuitive support. This theory is applied to analyze firms' entry/exit decisions, the long run equilibrium of an industry and comparisons between firms with different risk attitudes .
Keywords: Agricultural and Food Policy; Risk and Uncertainty (search for similar items in EconPapers)
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