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Symmetry Restrictions in the Analysis of the Competitive Firm under Price Uncertainty

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Author Info
Dalal, Ardeshir
Abstract

This paper shows that, if the production function is appropriately restricted, some symmetry (reciprocity) results that hold for a competitive firm under certainty continue to hold under price uncertainty, for any strictly concave utility function. In contrast, earlier analyses have established these symmetry relations by imposing restrictions on the utility function. The present analysis uses the envelope theorem, the indirect utility function, and the duality between production and cost. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 31 (1990)
Issue (Month): 1 (February)
Pages: 207-11
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Handle: RePEc:ier:iecrev:v:31:y:1990:i:1:p:207-11

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  1. Liu, Yucan & Shumway, C. Richard, 2005. "Indirect Utility Maximization under Risk: A Heterogeneous Panel Application," 2005 Annual Meeting, July 6-8, 2005, San Francisco, California 36307, Western Agricultural Economics Association. [Downloadable!]
  2. Moavia Alghalith, 2003. "Empirical Analysis under Additive/Multiplicative Output Uncertainty," CRIEFF Discussion Papers 0301, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
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  3. Moawia Alghalith, 2005. "Estimation with price and output uncertainty," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 247-257, November. [Downloadable!]
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