We use forward-looking and exogenous measures of output price uncertainty to examine the effect of price uncertainty on firm-level capital investment, risk management, and debt issuance. The effects of uncertainty vary significantly by firm size. When faced with high price uncertainty, large firms increase their hedging intensity but do not lower capital investment or debt issuance. In contrast...

The aim of this study is to investigate a behavioral approach by anchoring bias as a criterion to explain 52-week-high strategy and trough this we can find an explain for momentum strategy at uncertainty situation, to the companies listed on the Tehran Stock Exchange. The information uncertainty criteria include the book value to market value (BV / MV), company age (Age), the size of the entity...

We develop a model for pricing experience information goods that exhibit initial uncertainty in the marketplace. We show how a combination of heterogeneous consumer valuations of the good and an increasing, but concave, word-of-mouth effect that decreases uncertainty results in an inverted U-shaped willingness-to-pay function for the buyers. With a fixed-price strategy the uncertainty in the ma...

The celebrated Black-Scholes di.erential equation provides for the price of a 0nancial derivative. The uncertainty environment of such option price can be described by the classical ‘bit’: a system with two possible states. This paper argues for the introduction of a di.erent uncertainty environment characterized by the so called ‘qubit’. We obtain an information-based option price and discuss ...

________________________________________________________________________ Abstract This study examines the sensitivity of equity values of oil producers to changes in the uncertainty of future oil prices. We document that this sensitivity is negatively correlated with a firm's debt ratio and its production costs. These results indicate that companies that are more likely to experience financial ...

The Bertrand paradox holds that price competition among at least two firms eliminates all profits in equilibrium, when firms have identical constant marginal costs. This assumes that the number of competitors is common knowledge among firms. If firms are uncertain about the number of their competitors, there is no pure strategy equilibrium. But in mixed strategies an equilibrium exists. In this...