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STOCHASTIC INPUT DELIVERIES
Author(s) -
MARTIN ROBERT E.
Publication year - 1981
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1981.tb00343.x
Subject(s) - certainty , economics , order (exchange) , microeconomics , econometrics , mathematical economics , mathematics , finance , geometry
The subject of this paper is the theory of the firm confronted with uncertain deliveries of its inputs. Examples of this form of uncertainty may be found in interruptible natural gas or electricity supply contracts, labor absenteeism and allocations of gasoline. Analyses of the firm's order quantity expansion path and order intensities are conducted. Comparisons are made between the optimal values of inputs selected under certainty and uncertainty, as well as comparisons between expected out‐put and certainty output.