MARKET EQUILIBRIUM WITH RANDOM PRODUCTION

Bruce Gardner and Jean-Paul Chavas ()

No 278368, 1979 Annual Meeting, July 29-August 1, Pullman, Washington from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper investigates competitive equilibrium when production is subject to random deviations from. intended output. We find that the most commonly used specification of equilibrium price and output -- the intersection of the demand function and the intended supply function -- is incorrect. This result has possibly - important implications for some areas of current interest, including the literature on gains from price stabilization and the empirical modeling of supply response to risk.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 12
Date: 1979-07
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea79:278368

DOI: 10.22004/ag.econ.278368

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