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FIRM AND INDUSTRY OUTPUT WHEN PRODUCT DEMAND IS UNCERTAIN
Author(s) -
Pemberton James
Publication year - 1993
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.1993.tb00551.x
Subject(s) - economics , product (mathematics) , aggregate (composite) , microeconomics , aggregate demand , simple (philosophy) , industrial organization , partial equilibrium , production (economics) , work (physics) , general equilibrium theory , monetary economics , engineering , monetary policy , philosophy , materials science , geometry , mathematics , epistemology , composite material , mechanical engineering
Previous work has established the partial equilibrium response to product demand uncertainty by a single firm in a competitive industry, but for many purposes the aggregate output response of the whole industry is more important. The paper shows that this depends in a simple and intuitive way upon the attitudes to risk of the industry's constituent firms.