Price uncertainty

Price uncertainty

Chance that the future price of an asset will change.

Price Uncertainty

The chance or speculation that the price of an asset will change. This affects prices for stocks, commodities, and even bonds, whether directly or indirectly. Most of the time, price uncertainty refers to the possibility that a specific commodity is unstable. For example, a rice famine might produce uncertainty in the price of rice. However, it can also refer to uncertainty as to the real value of securities and their derivatives. According to Alan Greenspan, long-term, widespread price uncertainty is inimical to stable economic growth. See also: Price stability.
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In a regular assessment of the oil-rich country's economic health, the IMF on Monday urged Riyadh to remain vigilant against future oil price uncertainty, press tv reported.
EOP's board of trustees has already voted in favor of the revised Blackstone deal citing the price uncertainty surrounding the Vornado package, which includes 40% stock at a $52 stated price, a number that could easily drop if Vornado's share price takes a tumble.
In this paper, a general model of the competitive firm's behavior under output and factor (total) price uncertainty is developed to evaluate the role of market interdependencies in analyzing long-run equilibrium conditions and comparative statics analysis of increased uncertainty in output and input prices.
It is just over a quarter of a century since the publication of the seminal paper by Sandmo [1971] that formally introduced a systematic formulation of the competitive firm's behavior under output price uncertainty.
These contributions have invariably assumed that the firm's objective is to maximize the shareholder's expected utility function under a given source of price uncertainty and report the comparative statics analysis for a mean-preserving increase in either output price or factor cost uncertainty.
The main conclusion of these studies is that in the short run, when labor alone is a variable input, the risk-averse LMF produces more under output price uncertainty than under complete information.
Kahana, Nava and Jacob Paroush, "A Multi-Factor Labor-Managed Firm under Price Uncertainty.
On the Theory of the Competitive Labor-Managed Firm under Price Uncertainty.
Between now and January 1, 2007, all major electric utilities in upstate New York will begin transitioning their larger commercial and industrial customers to hourly market-based pricing, exposing all businesses in the region to fluctuating rates and price uncertainty.
Recent years have witnessed substantial progress in the economic analysis of the welfare consequences of price uncertainty, price stabilization, and related matters.
Therefore, price uncertainty enters only ex ante and, ex post, optimal decisions are always made.
The study estimates the costs that gas-fired generators face to deal with gas price uncertainty and addresses increasing volatility.