Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/35504 
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dc.contributor.authorDasgupta, Indraneelen
dc.date.accessioned2009-03-09-
dc.date.accessioned2010-07-07T11:52:39Z-
dc.date.available2010-07-07T11:52:39Z-
dc.date.issued2009-
dc.identifier.piurn:nbn:de:101:1-20090304744en
dc.identifier.urihttp://hdl.handle.net/10419/35504-
dc.description.abstractWe 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.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x4018en
dc.subject.jelD21en
dc.subject.ddc330en
dc.subject.keywordSupply aggregationen
dc.subject.keywordstochastic supply functionen
dc.subject.keywordstochastic consistencyen
dc.subject.keywordweak axiom of profit maximizationen
dc.subject.keywordstochastic supply inequalityen
dc.subject.keywordlaw of supplyen
dc.subject.stwAngeboten
dc.subject.stwMikroökonomiken
dc.subject.stwStochastischer Prozessen
dc.subject.stwTheorie der Unternehmungen
dc.subject.stwGesamtwirtschaftliches Angeboten
dc.subject.stwÖkonomisches Prinzipen
dc.subject.stwTheorieen
dc.titleSupply theory sans profit-maximization-
dc.type|aWorking Paperen
dc.identifier.ppn593354583en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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