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Dualities in the Functional Representations of a Production Technology

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Author Info
Hagen Bobzin ()
Abstract

Given the production technology of a multiproduct firm, economists usually try to represent this technology by functions, namely the cost function, the revenue function and the input and output distance functions. In doing so the analysis directs the attention to the (dual)matching of quantities and prices. Here, the duality scheme is based on Mahler's inequality and stresses dual aspects of associated functions, whereas the underlying optimization problems are not dual programs. Nevertheless, the discussion of shadow pricing reveals the similarities which exist with respect to some appropriately chosen dual programs.

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Paper provided by Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht in its series Volkswirtschaftliche Diskussionsbeitraege with number 79-99.

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Date of creation: 1999
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Handle: RePEc:sie:siegen:79-99

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Web page: http://www.uni-siegen.de/fb5/vwl/research/diskussionsbeitraege/

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  1. Marco Runkel, 1999. "Product Durability, Solid Waste Management and Market Structure," Volkswirtschaftliche Diskussionsbeitraege 78-99, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
  2. Weber, A., 1992. "Time Varying Devaluation Risk, Interest Rate Differentials, and Exchange Rates in Target Zones: Empirical Evidence from the EMS," Economics Working Papers 1993-11, School of Economics and Management, University of Aarhus.
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