Estimating the firm's demand and supply functions under uncertainty without expected utility
Working Papers from York University, Department of Economics
This paper extends the literature on firms’ behaviour under uncertainty by providing a simple framework for empirical analysis of general non-expected utility behaviour. We show that standard duality techniques can be used to derive and estimate demand and supply functions for non-expected utility maximizing firms. Moreover, the framework also provides a simple econometric test for a necessary condition for expected utility behaviour. In an empirical example we apply the model to the US Furniture and Fixtures industry and find that demand and supply functions retain all the usual “intuitive” properties. We test for expected utility behaviour and find that it cannot be rejected.
Keywords: Non-expected utility; Econometric test; Moments; Empirical application (search for similar items in EconPapers)
JEL-codes: D8 D2 C5 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 503 Service Unavailable
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:yca:wpaper:2000_5
Access Statistics for this paper
More papers in Working Papers from York University, Department of Economics
Contact information at EDIRC.
Series data maintained by Support ().