Supply theory sans profit-maximization

Arbeitspapier

We utilize the analytical construct of a stochastic supply function to provide an aggregate representation of a finite collection of standard deterministic supply functions. We introduce a consistency postulate for a stochastic supply function that may be satisfied even if no underlying deterministic supply function is rationalizable in terms of profit maximization. Our consistency postulate is nonetheless equivalent to a stochastic expansion of supply inequality, which summarizes the predictive content of the traditional theory of competitive supply. A number of key results in the deterministic theory follow as special cases from this equivalence. In particular, it yields a probabilistic version of the law of supply, which implies the traditional specification. Our analysis thus provides a necessary and sufficient axiomatic foundation for a de-coupling of the predictive content of the classical theory of competitive firm behavior from its a priori roots in profit maximization, while subsuming the traditional theory as a special case.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 4018

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Behavior: Theory
• Thema: Supply aggregation ; stochastic supply function ; stochastic consistency ; weak axiom of profit maximization ; stochastic supply inequality ; law of supply ; Angebot ; Mikroökonomik ; Stochastischer Prozess ; Theorie der Unternehmung ; Gesamtwirtschaftliches Angebot ; Ökonomisches Prinzip ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dasgupta, Indraneel
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/35504
• URN: urn:nbn:de:101:1-20090304744
• Letzte Aktualisierung: 20.09.2024, 08:25 MESZ