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dc.contributor.authorFriberg, Richarden_US
dc.contributor.authorMartensen, Kajen_US
dc.date.accessioned2012-03-28T13:03:50Z-
dc.date.available2012-03-28T13:03:50Z-
dc.date.issued2000en_US
dc.identifier.urihttp://hdl.handle.net/10419/56118-
dc.description.abstractAverage profits of a price taker are increasing in the variability of the output price (Oi, 1961). We show that, for the same reason, average profits of the price taker are increasing in the variability of the price of inputs. We proceed to establish that the same holds for a firm with a downward sloping demand curve. Unless the inverse demand curve of the firm with market power is very convex, the profit function of the price taker forms an upper limit for the convexity of profit (assuming constant curvature of costs).en_US
dc.language.isoengen_US
dc.publisherEkonomiska Forskningsinst. Stockholmen_US
dc.relation.ispartofseriesSSE/EFI Working Paper Series in Economics and Finance 402en_US
dc.subject.jelD80en_US
dc.subject.ddc330en_US
dc.subject.keywordcost uncertaintyen_US
dc.subject.keywordconvexity of profit functionen_US
dc.subject.stwMark-up Pricingen_US
dc.subject.stwPreistheorieen_US
dc.subject.stwTheorieen_US
dc.titleVariability and avrage profits: Does Oi's result generalize?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn333188772en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics

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