Econometrica Vol. 39 No. 5 1971
Investment Under Uncertainty
Abstract
[This paper determines the time series behavior of investment, output, and prices in a competitive industry with a stochastic demand. It is shown, first, that the equilibrium development for the industry solves a particular dynamic programming problem (maximization of "consumer surplus"). This problem is then studied to determine the characteristics of the equilibrium paths.]
- DOI
- 10.2307/1909571
- Volume
- 39
- Issue
- 5
- Pages
- 659
- Sources
- bibtex:phds-export.bib crossref openalex