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Hedging and production decisions under uncertainty: A survey

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  • Moawia Alghalith

Abstract

This paper synthesizes and analyzes some important current and recent contributions to the theory of the firm under uncertainty. In so doing, it examines the production and hedging decisions of the competitive firm under a single source and multiple sources of uncertainty.

Suggested Citation

  • Moawia Alghalith, 2008. "Hedging and production decisions under uncertainty: A survey," Papers 0810.0917, arXiv.org.
    • Handle: RePEc:arx:papers:0810.0917
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    File URL: http://arxiv.org/pdf/0810.0917
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    References listed on IDEAS

    as
    1. Moawia Alghalith, 2006. "A note on output hedging with cost uncertainty," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(5), pages 387-389.
    2. Viaene, Jean-Marie & Zilcha, Itzhak, 1998. "The Behavior of Competitive Exporting Firms under Multiple Uncertainty," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 591-609, August.
    3. #Name#, 2003. "Input Demand under Multiple Uncertainty," Discussion Paper Series, School of Economics and Finance 200304, School of Economics and Finance, University of St Andrews.
    4. Moawia Alghalith, 2007. "Input hedging: generalizations," Journal of Risk Finance, Emerald Group Publishing, vol. 8(3), pages 309-312, May.
    5. Machina, Mark J, 1982. ""Expected Utility" Analysis without the Independence Axiom," Econometrica, Econometric Society, vol. 50(2), pages 277-323, March.
    6. Harry White, 1986. "Uncertainty and Factor Proportions [Factor Price Uncertainty with Variable Proportions]," Canadian Journal of Economics, Canadian Economics Association, vol. 19(4), pages 814-815, November.
    7. repec:ebl:ecbull:v:4:y:2005:i:15:p:1-6 is not listed on IDEAS
    8. Moawia Alghalith, 2003. "Cost uncertainty with multiple variable inputs," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 31(3), pages 290-290, September.
    9. Moawia Alghalith, 2005. "A note on output hedging with basis risk- an extension of Paroush and Wolf hedging model," Economics Bulletin, AccessEcon, vol. 4(15), pages 1-6.
    10. John Quiggin, 2003. "Background risk in generalized expected utility theory," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(3), pages 607-611, October.
    11. Harvey Lapan & Giancarlo Moschini, 1994. "Futures Hedging Under Price, Basis, and Production Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 465-477.
    12. Günter Franke & Harris Schlesinger & Richard C. Stapleton, 2006. "Multiplicative Background Risk," Management Science, INFORMS, vol. 52(1), pages 146-153, January.
    13. Paroush, Jacob & Wolf, Avner, 1992. "The Derived Demand with Hedging Cost Uncertainty in the Futures Markets," Economic Journal, Royal Economic Society, vol. 102(413), pages 831-844, July.
    14. Alghalith, Moawia, 2006. "A note on hedging cost and basis risks," Economic Modelling, Elsevier, vol. 23(3), pages 534-537, May.
    15. Stewart, Marion B, 1978. "Factor-Price Uncertainty with Variable Proportions," American Economic Review, American Economic Association, vol. 68(3), pages 468-473, June.
    16. Gollier, Christian & Pratt, John W, 1996. "Risk Vulnerability and the Tempering Effect of Background Risk," Econometrica, Econometric Society, vol. 64(5), pages 1109-1123, September.
    17. Dwight Grant, 1985. "Theory of the Firm with Joint Price and Output Risk and a Forward Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 630-635.
    18. Holthausen, Duncan M, 1979. "Hedging and the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 69(5), pages 989-995, December.
    19. Moawia Alghalith, 2006. "Hedging decisions with price and output uncertainty," Annals of Finance, Springer, vol. 2(2), pages 225-227, March.
    20. Pratt, John W, 1988. "Aversion to One Risk in the Presence of Others," Journal of Risk and Uncertainty, Springer, vol. 1(4), pages 395-413, December.
    21. Anderson, Ronald W & Danthine, Jean-Pierre, 1983. "Hedger Diversity in Futures Markets," Economic Journal, Royal Economic Society, vol. 93(37), pages 370-389, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Dionne, Georges & Santugini, Marc, 2014. "Entry, imperfect competition, and futures market for the input," International Journal of Industrial Organization, Elsevier, vol. 35(C), pages 70-83.

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