Production theory with profit‐constrained revenue‐maximization: The duality approach

Nava Kahana, Shmuel Nitzan

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


This paper derives a general version of Baumol's production theory, where the main behavioral assumption is ‘revenue maximization subject to a profit constraint’ instead of ‘profit maximization’. This theory turns out to be analogous to the neoclassical (competitive) production and consumption theories. Employing the fruitful duality approach it is presented here in a unified and very economical form that provides a complete and general analysis of the comparative static behavior of Baumol's firm.

Original languageEnglish
Pages (from-to)269-273
Number of pages5
JournalManagerial and Decision Economics
Issue number4
StatePublished - Dec 1988


Dive into the research topics of 'Production theory with profit‐constrained revenue‐maximization: The duality approach'. Together they form a unique fingerprint.

Cite this