Production decisions in case of monotone likelihood ratio shifts of cumulative distribution functions

Yaffa Machnes

Research output: Contribution to journalArticlepeer-review

Abstract

A firm faces two independent sources of risk: uncertain demand and the background risk to its assets. We show that certainty equivalent behavior occurs in the case of monotone likelihood ratio shifts of the distribution of each of the two sources of risk.

Original languageEnglish
Pages (from-to)299-302
Number of pages4
JournalInsurance: Mathematics and Economics
Volume13
Issue number3
DOIs
StatePublished - Dec 1993

Keywords

  • Likelihood ratio shifts
  • Production

Fingerprint

Dive into the research topics of 'Production decisions in case of monotone likelihood ratio shifts of cumulative distribution functions'. Together they form a unique fingerprint.

Cite this