Input hedging: generalizations

Abstract

Purpose

The purpose of this paper is to generalize input‐hedging models.

Design/methodology/approach

Using a general utility function and general probability distributions, the paper extends the Paroush‐Wolf and Alghalith theoretical models by including two risky (hedged) inputs.

Findings

The paper finds that the inclusion of two risky inputs affects the previous theoretical results.

Originality/value

The paper introduces new theoretical and technical contributions. Also, it is intended to be a foundation for future empirical and theoretical studies.

Citation

Alghalith, M. (2007), "Input hedging: generalizations", Journal of Risk Finance, Vol. 8 No. 3, pp. 309-312. https://doi.org/10.1108/15265940710750521