Microeconomia in incertezza: un quadro di riferimento per l’analisi dei rischi d’impresa [MICROECONOMICS UNDER UNCERTAINTY: A FRAMEWORK FOR THE ANALYSIS OF BUSINESS RISKS]

Franco Varetto ()
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Franco Varetto: CNR-IRCrES, Collegio Carlo Alberto - via Real Collegio, n. 30 10024 Moncalieri (Torino) – ITALY, http://www.ircres.cnr.it/index.php/it/

IRCrES Working Paper from CNR-IRCrES Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY - former Institute for Economic Research on Firms and Growth - Torino (TO) ITALY

Abstract: The introduction of risk in the microeconomic theory has some important effects on the behavior of the competitive firms: the level of optimal production under condition of risk is lower than under certainty; the optimal mix of productive input shifts to ones with less uncertainty; vertical integration, diversification and hedging are as many responses for optimal management of risks. The conclusions of the microeconomics under uncertainty depend also from the way the risk is modeled: additive risk is easier to handle than multiplicative risk, and conclusions from that are closer to microeconomics under certainty.

Keywords: Microeconomics; uncertainty; risk; expected utility; hedging (search for similar items in EconPapers)
JEL-codes: D01 D21 D24 D41 D81 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2015-12
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Persistent link: https://EconPapers.repec.org/RePEc:csc:ircrwp:201504

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