Optimal Hedging with Basis Risk

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Asymptotic analysis of utility-based hedging strategies for small number of contingent claims (2007, background): “For example, in the framework of financial model with basic risk and for power and exponential utilities Davis [1] computes the first order approximation with respect to a small parameter 1 − ρ, where ρ is the correlation between traded and non-traded assets, and Henderson and Hobson [8] and Henders”
Performance of utility-based strategies for hedging basis risk (2004, background): “However, this class is not big enough to ensure locating the optimal strategy by searching only within it [4, 19].”
Horizon-unbiased utility functions (2007, methodology): “Such mixed problems have occurred previously in the work of Davis and Zariphopoulou [3], Karatzas and Kou [12] and Karatzas and Wang [13].”