FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W1544337579> ?p ?o ?g. }

• W1544337579 endingPage "681" @default.
• W1544337579 startingPage "675" @default.
• W1544337579 abstract "The effects of output price uncertainty on a competitive firm's supply and factor demands have recently been explored under the assumption that all decisions are made before the price is observed. Agnar Sandmo has shown that a risk-averse, competitive firm with a nonrandom cost function will produce a smaller output if the price is random than it would if the price were known with certainty to equal its mean. Raveendra Batra and Aman Ullah and I have extended the analysis by considering the effects of output price uncertainty on factor demands. Among other things, Batra and Ullah show that the firm will choose its inputs to minimize the cost of producing whatever level of output is chosen. This result, combined with the Sandmo result that the presence of uncertainty reduces output, implies that the effects of uncertainty on factor demands depend on what effect the decreased output due to uncertainty has on the cost minimizing levels of inputs. Except for the rare case of inferior factors, the presence of uncertainty reduces factor demands. Finally, it is clear from these analyses that if the firm is risk neutral, the uncertainty has no effect on supply and factor demands. In this paper I relax the assumption that all inputs are chosen before the output price is observed. My conclusions show that the results noted above are really rather sensitive to that particular assumption. A simple two-input, one-output model of the firm is employed. One of the inputs, which I call capital, is quasi fixed in the sense that it must be chosen before the output price is observed. The other input, which I call labor, is variable since it is not chosen until the output price is observed. Clearly, this implies that the level of output is not determined until its price is known. Although labor may be a name for the variable input in view of the recent discussions of its character, it seems apparent that in many situations there are inputs which can be varied on short notice. By allowing a variable input in this sense we considerably alter the situation facing the firm. If, after observing the output price, it turns out that the firm made a poor choice regarding the quasi-fixed factor, it is able to partially adjust by choosing an appropriate level of the variable input. This ability to make adjustments for what, ex post, appears to be a decision is totally lacking if all inputs must be chosen before the uncertainty is resolved. In Section I the basic model is presented. In Section II the analysis for a risk-neutral firm is carried out, and Section III contains an example. In Section IV the analysis is extended to a risk-averse firm. The final section contains some brief concluding comments." @default.
• W1544337579 created "2016-06-24" @default.
• W1544337579 creator A5010979496 @default.
• W1544337579 date "1976-01-01" @default.
• W1544337579 modified "2023-09-28" @default.
• W1544337579 title "Factor Demand with Output Price Uncertainty" @default.
• W1544337579 cites W1995118028 @default.
• W1544337579 cites W2004950202 @default.
• W1544337579 cites W2038625161 @default.
• W1544337579 cites W2053347727 @default.
• W1544337579 hasPublicationYear "1976" @default.
• W1544337579 type Work @default.
• W1544337579 sameAs 1544337579 @default.
• W1544337579 citedByCount "89" @default.
• W1544337579 countsByYear W15443375792012 @default.
• W1544337579 countsByYear W15443375792013 @default.
• W1544337579 countsByYear W15443375792014 @default.
• W1544337579 countsByYear W15443375792015 @default.
• W1544337579 countsByYear W15443375792017 @default.
• W1544337579 countsByYear W15443375792018 @default.
• W1544337579 countsByYear W15443375792019 @default.
• W1544337579 countsByYear W15443375792020 @default.
• W1544337579 countsByYear W15443375792021 @default.
• W1544337579 crossrefType "posted-content" @default.
• W1544337579 hasAuthorship W1544337579A5010979496 @default.
• W1544337579 hasConcept C14036430 @default.
• W1544337579 hasConcept C149782125 @default.
• W1544337579 hasConcept C162324750 @default.
• W1544337579 hasConcept C166957645 @default.
• W1544337579 hasConcept C175444787 @default.
• W1544337579 hasConcept C2778348673 @default.
• W1544337579 hasConcept C45622825 @default.
• W1544337579 hasConcept C78458016 @default.
• W1544337579 hasConcept C83646750 @default.
• W1544337579 hasConcept C86803240 @default.
• W1544337579 hasConcept C95457728 @default.
• W1544337579 hasConceptScore W1544337579C14036430 @default.
• W1544337579 hasConceptScore W1544337579C149782125 @default.
• W1544337579 hasConceptScore W1544337579C162324750 @default.
• W1544337579 hasConceptScore W1544337579C166957645 @default.
• W1544337579 hasConceptScore W1544337579C175444787 @default.
• W1544337579 hasConceptScore W1544337579C2778348673 @default.
• W1544337579 hasConceptScore W1544337579C45622825 @default.
• W1544337579 hasConceptScore W1544337579C78458016 @default.
• W1544337579 hasConceptScore W1544337579C83646750 @default.
• W1544337579 hasConceptScore W1544337579C86803240 @default.
• W1544337579 hasConceptScore W1544337579C95457728 @default.
• W1544337579 hasIssue "4" @default.
• W1544337579 hasLocation W15443375791 @default.
• W1544337579 hasOpenAccess W1544337579 @default.
• W1544337579 hasPrimaryLocation W15443375791 @default.
• W1544337579 hasRelatedWork W1489484040 @default.
• W1544337579 hasRelatedWork W1533169350 @default.
• W1544337579 hasRelatedWork W1551463368 @default.
• W1544337579 hasRelatedWork W1554325385 @default.
• W1544337579 hasRelatedWork W1556356048 @default.
• W1544337579 hasRelatedWork W1987882256 @default.
• W1544337579 hasRelatedWork W1995118028 @default.
• W1544337579 hasRelatedWork W1995503011 @default.
• W1544337579 hasRelatedWork W2004950202 @default.
• W1544337579 hasRelatedWork W2009685525 @default.
• W1544337579 hasRelatedWork W2012808679 @default.
• W1544337579 hasRelatedWork W2029330550 @default.
• W1544337579 hasRelatedWork W2038625161 @default.
• W1544337579 hasRelatedWork W2073689540 @default.
• W1544337579 hasRelatedWork W2580645530 @default.
• W1544337579 hasRelatedWork W2994219315 @default.
• W1544337579 hasRelatedWork W3124236867 @default.
• W1544337579 hasRelatedWork W3124580288 @default.
• W1544337579 hasRelatedWork W3125709795 @default.
• W1544337579 hasRelatedWork W3125975571 @default.
• W1544337579 hasVolume "66" @default.
• W1544337579 isParatext "false" @default.
• W1544337579 isRetracted "false" @default.
• W1544337579 magId "1544337579" @default.
• W1544337579 workType "article" @default.