Comparative statics for state-contingent technologies

The implications of supermodularity for comparative-static analysis in a generalized version of the separable-effort representation of a firm facing stochastic prices and a stochastic technology are. Previous analysis is generalized in two ways. General risk-averse, as opposed to expected-utility, preferences are considered. The stochastic technology is represented by an Arrow-Debreu state-space representation. It is shown that results familiar from the theory of the price taking firm in the absence of risk generalize to the uncertain case.


Issue Date:
Nov 30 2003
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/150351
PURL Identifier:
http://purl.umn.edu/150351
Total Pages:
14
JEL Codes:
D21; D81
Series Statement:
Risk and Uncertainty Program
5/R03




 Record created 2017-04-01, last modified 2019-08-29

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