TY - JOUR
T1 - Production theory with profit‐constrained revenue‐maximization
T2 - The duality approach
AU - Kahana, Nava
AU - Nitzan, Shmuel
PY - 1988/12
Y1 - 1988/12
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84986849699&partnerID=8YFLogxK
U2 - 10.1002/mde.4090090403
DO - 10.1002/mde.4090090403
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AN - SCOPUS:84986849699
SN - 0143-6570
VL - 9
SP - 269
EP - 273
JO - Managerial and Decision Economics
JF - Managerial and Decision Economics
IS - 4
ER -