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On Separability of the Profit Function

R. Fare and Shawna Grosskopf
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R. Fare: Oregon State University

Journal of Optimization Theory and Applications, 2000, vol. 105, issue 3, No 8, 609-620

Abstract: Abstract The present paper is concerned with deriving conditions on technology which are required for additive separability of the associated profit function. The appropriate representation of technology in this case is the Luenberger shortage function. The paper shows that this function must be simultaneously input-and-output translation homothetic.

Keywords: separability; shortage functions; profit function; directional distance function; duality (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (5)

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DOI: 10.1023/A:1004693107475

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