Abstract
In this paper we show under which conditions uncertainty theory provides an unambiguous answer to the question whether firms in an uncertain environment will produce and invest more, the same, less than under certainty. In chapter 2 general models are developed which in principle apply to all decisions under uncertainty, though the decision variable is interpreted here mainly as production (for an overview see Aiginger 1987).
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References
Aiginger, K., “The Impact of Risk Attitude, Uncertainty and Disequilibria on Optimal Production and Inventory”, Theory and Decision, 19, 1985, pp. 51–75.
Aiginger, K., “Production and Decision Theory under Uncertainty”, Blackwell, Oxford, 1987.
Nickell, S. J. “The Investment Decision of Firms”, Cambridge University Press, Digswell Place, 1978.
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© 1989 Springer-Verlag Berlin Heidelberg
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Aiginger, K. (1989). The Optimal Reaction of Production and Investment on Uncertainty. In: Funke, M. (eds) Factors in Business Investment. Microeconomic Studies. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-48748-4_12
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DOI: https://doi.org/10.1007/978-3-642-48748-4_12
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-48750-7
Online ISBN: 978-3-642-48748-4
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