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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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Publicado en:American Economic Review Vol. 65; no. 1; pp. 248 - 249
Autor principal: Leland, Hayne E.
Formato: Artículo
Publicado: American Economic Association Mar1975
Materias:
Stochastic analysis
Uncertainty
Demand function
Stochastic processes
Rational expectations (Economic theory)
Economic demand
Consumption (Economics)
Probability theory
Acceso en línea:Ver este registro en EBSCOhost
Sumario: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.