#2643. Invariant Risk Preferences and Supply Response under Price Risk

December 2026publication date
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Journal’s subject area:
Economics and Econometrics;
Agricultural and Biological Sciences (miscellaneous);
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Abstract:
The paper develops a supply-response model for producers with fixed preferences facing price risk and empirically applies it to sample data from Cretan olive oil producers. We also estimate the generalized Leontief cost function and use the price distribution that individual farmers have historically encountered to induce different representations of price risk that are consistent with an invariant preference structure.
Keywords:
Cretan olive-oil producers; invariant risk preferences; price risk

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