Theory of the Firm Facing Uncertain Demand: Reply.

This article presents a response to the commentary made by Robert Korkie (1975) regarding the author's study of a firm facing uncertain demand. The author proved the consistency of his findings that linear stochastic demand functions will satisfy the principle of increasing uncertainty (PIU) for the...

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Published in:American Economic Review Vol. 65; no. 1; pp. 248 - 249
Main Author: Leland, Hayne E.
Format: Article
Published: American Economic Association Mar1975
Subjects:
Online Access:View this record in EBSCOhost
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        atl: Theory of the Firm Facing Uncertain Demand: Reply.
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        au: Leland, Hayne E.
        affil: School of Business Administration, University of California, Berkeley
      su:
        Stochastic analysis
        Uncertainty
        Demand function
        Stochastic processes
        Rational expectations (Economic theory)
        Economic demand
        Consumption (Economics)
        Probability theory
      sug:
        subj:
          Stochastic analysis
          Uncertainty
          Demand function
          Stochastic processes
          Rational expectations (Economic theory)
          Economic demand
          Consumption (Economics)
          Probability theory
      ab: This article presents a response to the commentary made by Robert Korkie (1975) regarding the author's study of a firm facing uncertain demand. The author proved the consistency of his findings that linear stochastic demand functions will satisfy the principle of increasing uncertainty (PIU) for the range of outputs relevant to a profit oriented firm. As stated in the article, the author indicated that linear stochastic demand curves satisfying are consistent with the PIU over the range of outputs relevant to analysis.
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      doctype: Article
      src: R
    language: English
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