We show that when the firm is risk neutral, its optimal inventory is smaller under debt. The effects of debt on optimal inventory decreases with shortage cost and increases with production cost. However, the relationship of debt and optimal inventory is not clear when the firm is loss-averse....
We find that SMEs led by more loss-averse managers are less likely to access domestic debt, and have a significantly lower level of foreign debt. Notably, we observe that loss aversion exerts a stronger effect on domestic debt than on foreign debt financing behavior....
We find that SMEs led by more loss-averse managers are less likely to access domestic debt, and have a significantly lower level of foreign debt. Notably, we observe that loss aversion exerts a stronger effect on domestic debt than on foreign debt financing behavior....
Multi-period optimization with loss-averse customer behavior: Joint pricing and inventory decisions with stochastic demand To maximize a firm's profit over a finite planning Song,Hongfang,Ran,... - 《Expert Systems with Application》 被引量: 4发表: 2017年 Winner determination problem with loss-av...
This paper establishes a loss-averse newsvendor model by considering buyback and penalty cost,the newsvendor's loss aversion is expressed by exploiting the utility function of prospect theory and the price factor is introduced into demand forecasting. Through derivation,the relationship between newsvendor...
The key input to these models is market demand, which is often assumed to inherit the characteristics of consumer behavior鈥攁s when, for example, one assumes that a market consisting of loss-averse consumers is more responsive to losses than to gains. Yet market demand and consumer behavior ...
According to the zero utility principle, the maximum premium P a non-satiable and risk averse decision maker, with total wealth w is willing to pay, corresponds to the solution of the following non linear equation: $$\begin{aligned} {\mathbb{E}}\left[ u\left( w-\sum _{i=1}^n X ...
consumers' loss-averse behavior such as their perceived values of gain and loss, and their sensitivity to them. We also demonstrate that the firm's equilibrium inventory stocking policy reflects both the economic logic of the traditional newsvendor inventory model, and the loss-averse behavior of ...
We study equilibrium firm-level stock returns in two economies: one in which investors are loss averse over the fluctuations of their stock portfolio, and ... N Barberis,H Ming - 《Journal of Finance》 被引量: 1799发表: 2001年 Modeling Loss Aversion and Reference Dependence Effects on Brand...
Tell me what's the situation. When the percentage for risk of premium is greater than probability that something bad happened. If this is the case, there is a risk averse individual, then you will strictly prefer the luxury with the example. Why delicious mathematically must work you can che...