Duality, income and substitution effects for the competitive firm under price uncertainty

Carmen F. Menezes and X. Wang ()
Additional contact information
Carmen F. Menezes: Department of Economics, University of Missouri-Columbia, Columbia, MO 65211, USA, Postal: Department of Economics, University of Missouri-Columbia, Columbia, MO 65211, USA

Managerial and Decision Economics, 2005, vol. 26, issue 4, 249-257

Abstract: This paper uses duality theory to decompose the total effect on the competitive firm's output of an increase in the riskiness of output price into income and substitution effects. Properties of preferences that control the sign of each effect are identified. The analysis extends to the general class of quasi-linear decision models in which the payoff is linear in the random variable. Copyright © 2005 John Wiley & Sons, Ltd.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1002/mde.1217 Link to full text; subscription required (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:26:y:2005:i:4:p:249-257

DOI: 10.1002/mde.1217

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().