@misc{Dasgupta2009Supply,
abstract = {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.},
address = {Bonn},
author = {Indraneel Dasgupta},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D21; 330; Supply aggregation; stochastic supply function; stochastic consistency; weak axiom of profit maximization; stochastic supply inequality; law of supply; Angebot; Mikro\"{o}konomik; Stochastischer Prozess; Theorie der Unternehmung; Gesamtwirtschaftliches Angebot; \"{O}konomisches Prinzip; Theorie},
language = {eng},
note = {urn:nbn:de:101:1-20090304744},
number = {4018},
publisher = {Institute for the Study of Labor (IZA)},
series = {IZA discussion papers},
title = {Supply theory sans profit-maximization},
url = {http://hdl.handle.net/10419/35504},
year = {2009}
}