Affordable Access

The LeChatelier Principle under Production Uncertainty.



Under production uncertainty, it is shown that the LeChatelier principle holds for the derived demand of the "i"th factor if it is technically complementary (competing) with the risk-increasing (risk-reducing) quasi-fixed input and absolute risk aversion is decreasing. In addition, the LeChatelier principle for the output supply function holds if the quasi-fixed factor is an inferior (normal) and risk-increasing (risk-reducing) input and partial risk aversion is increasing. Copyright 1996 by The editors of the Scandinavian Journal of Economics.

There are no comments yet on this publication. Be the first to share your thoughts.


Seen <100 times