Labour hoarding, price rigidity and the theory of imperfect competition under uncertain demand

Résultats de recherche: Contribution à un journal/une revueArticle

Résumé

It is shown that a monopolistic firm under uncertainty may be inclined to keep some of its output unsold when demand is low. This gives rise to changes in conventional results. Under uncertainty, a risk-neutral monopolistic firm produces more than in a deterministic environment and it refuses to sell its total output when demand is low, because the marginal revenue could become negative or lower than the cost of selling the product. Moreover, in this framework, prices are shown to be more rigid downwards than upwards. The model also provides a new explanation for labour hoarding.
langue originaleAnglais
Pages (de - à)477-487
Nombre de pages11
journalScandinavian Journal of Economics
Volume101
Numéro de publication3
étatPublié - 1 janv. 1999

Empreinte digitale

Uncertainty
Imperfect competition
Uncertain demand
Labor hoarding
Price rigidity
Revenue
Costs

Citer ceci

@article{7a33ba2723dc4c738f7cea140b7e13fc,
title = "Labour hoarding, price rigidity and the theory of imperfect competition under uncertain demand",
abstract = "It is shown that a monopolistic firm under uncertainty may be inclined to keep some of its output unsold when demand is low. This gives rise to changes in conventional results. Under uncertainty, a risk-neutral monopolistic firm produces more than in a deterministic environment and it refuses to sell its total output when demand is low, because the marginal revenue could become negative or lower than the cost of selling the product. Moreover, in this framework, prices are shown to be more rigid downwards than upwards. The model also provides a new explanation for labour hoarding.",
author = "E. Toulemonde",
note = "Copyright 2004 Elsevier Science B.V., Amsterdam. All rights reserved.",
year = "1999",
month = "1",
day = "1",
language = "English",
volume = "101",
pages = "477--487",
journal = "Scandinavian Journal of Economics",
issn = "0347-0520",
publisher = "Wiley-Blackwell",
number = "3",

}

Labour hoarding, price rigidity and the theory of imperfect competition under uncertain demand. / Toulemonde, E.

Dans: Scandinavian Journal of Economics, Vol 101, Numéro 3, 01.01.1999, p. 477-487.

Résultats de recherche: Contribution à un journal/une revueArticle

TY - JOUR

T1 - Labour hoarding, price rigidity and the theory of imperfect competition under uncertain demand

AU - Toulemonde, E.

N1 - Copyright 2004 Elsevier Science B.V., Amsterdam. All rights reserved.

PY - 1999/1/1

Y1 - 1999/1/1

N2 - It is shown that a monopolistic firm under uncertainty may be inclined to keep some of its output unsold when demand is low. This gives rise to changes in conventional results. Under uncertainty, a risk-neutral monopolistic firm produces more than in a deterministic environment and it refuses to sell its total output when demand is low, because the marginal revenue could become negative or lower than the cost of selling the product. Moreover, in this framework, prices are shown to be more rigid downwards than upwards. The model also provides a new explanation for labour hoarding.

AB - It is shown that a monopolistic firm under uncertainty may be inclined to keep some of its output unsold when demand is low. This gives rise to changes in conventional results. Under uncertainty, a risk-neutral monopolistic firm produces more than in a deterministic environment and it refuses to sell its total output when demand is low, because the marginal revenue could become negative or lower than the cost of selling the product. Moreover, in this framework, prices are shown to be more rigid downwards than upwards. The model also provides a new explanation for labour hoarding.

UR - http://www.scopus.com/inward/record.url?scp=0033453403&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:0033453403

VL - 101

SP - 477

EP - 487

JO - Scandinavian Journal of Economics

JF - Scandinavian Journal of Economics

SN - 0347-0520

IS - 3

ER -