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Cost Functions and Duality for Stochastic Technologies
Author(s) -
Chambers Robert G.,
Quiggin John
Publication year - 1998
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1244501
Subject(s) - duality (order theory) , dual (grammatical number) , maximization , mathematical optimization , production (economics) , mathematical economics , production cost , economics , mathematics , computer science , microeconomics , engineering , combinatorics , mechanical engineering , art , literature
Cost functions dual to stochastic production technologies are derived and their properties are discussed. These cost functions are shown to be consistent with expected‐utility maximization without placing serious structural restrictions on the underlying technology.