IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v24y1987i2p163-166.html
   My bibliography  Save this article

Increasing Returns to Scale and Location Theory of the Firm Under Price Uncertainty

Author

Listed:
  • Yeung-nan Shieh

Abstract

This paper shows that it is not appropriate to consider increasing returns to scale in the location theory of the firm, when the production function is assumed to be concave. The paper assumes that the production function is quasi-concave. If the marginal revenue curve cuts through the marginal cost curve from above only once, then comparative static analysis can be applied in the case of increasing returns to scale.

Suggested Citation

  • Yeung-nan Shieh, 1987. "Increasing Returns to Scale and Location Theory of the Firm Under Price Uncertainty," Urban Studies, Urban Studies Journal Limited, vol. 24(2), pages 163-166, April.
    • Handle: RePEc:sae:urbstu:v:24:y:1987:i:2:p:163-166
    DOI: 10.1080/713703866
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/713703866
    Download Restriction: no
    File URL: https://libkey.io/10.1080/713703866?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
    2. Coes, Donald V, 1977. "Firm Output and Changes in Uncertainty," American Economic Review, American Economic Association, vol. 67(2), pages 249-251, March.
    3. Leland, Hayne E, 1972. "Theory of the Firm Facing Uncertain Demand," American Economic Review, American Economic Association, vol. 62(3), pages 278-291, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lin-Ti Tan & Song-Ken Hsu, 2000. "Production Location under Technology Uncertainty," Environment and Planning A, , vol. 32(3), pages 445-454, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Quiggin, John C. & Anderson, Jock R., 1979. "Stabilisation And Risk Reduction In Australian Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(3), pages 1-16, December.
    2. Chao-cheng Mai, 1984. "Demand Function and Location Theory of the Firm Under Price Uncertainty," Urban Studies, Urban Studies Journal Limited, vol. 21(4), pages 459-464, November.
    3. Michal Bauer, 2007. "An Endogenous Attitude to Firms’ Risk Aversion: A Model," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(7-8), pages 382-399, September.
    4. Huang-Meier, Winifred & Freeman, Mark C., 2015. "Aggregate dividends and consumption smoothing," International Review of Financial Analysis, Elsevier, vol. 42(C), pages 324-335.
    5. Eeckhoudt, Louis & Gollier, Christian & Schlesinger, Harris, 1997. "The no-loss offset provision and the attitude towards risk of a risk-neutral firm," Journal of Public Economics, Elsevier, vol. 65(2), pages 207-217, August.
    6. Gabszewicz, Jean & Tarola, Ornella & Zanaj, Skerdilajda, 2010. "On uncertainty when it affects successive markets," Economics Letters, Elsevier, vol. 106(2), pages 133-136, February.
    7. John Quiggin, 2022. "Production under uncertainty and choice under uncertainty in the emergence of generalized expected utility theory," Theory and Decision, Springer, vol. 92(3), pages 717-729, April.
    8. Wang, Shinn-Shyr & Stiegert, Kyle W., 2006. "The Duopolistic Firm with Endogenous Risk Control: Case of Persuasive Advertising and Product Differentiation," Staff Paper Series 496, University of Wisconsin, Agricultural and Applied Economics.
    9. Mirman, Leonard J. & Santugini, Marc, 2013. "Firms, shareholders, and financial markets," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(2), pages 152-164.
    10. A. G. Holtmann & Todd L. Idson, 1991. "Winning an Educational Scholarship," The American Economist, Sage Publications, vol. 35(1), pages 30-39, March.
    11. Safra, Zvi & Zilcha, Itzhak, 1986. "Firm's hedging behavior without the expected utility hypothesis," Economics Letters, Elsevier, vol. 21(2), pages 145-148.
    12. Cukrowski, Jacek & Aksen, Ernest, 2003. "Perfect competition and intra-industry trade," Economics Letters, Elsevier, vol. 78(1), pages 101-108, January.
    13. Trabelsi, Mohamed Ali, 2006. "Les nouveaux modèles de décision dans le risque et l’incertain : quel apport ? [The new models of decision under risk or uncertainty : What approach?]," MPRA Paper 25442, University Library of Munich, Germany.
    14. Eldor, Rafael & Zilcha, Itzhak, 1987. "Discriminating Monopoly, Forward Markets and International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(2), pages 459-468, June.
    15. Justin P. Johnson & David P. Myatt, 2006. "On the Simple Economics of Advertising, Marketing, and Product Design," American Economic Review, American Economic Association, vol. 96(3), pages 756-784, June.
    16. Mohamed Jellal & François-Charles Wolff, 2005. "Free Entry under Uncertainty," Journal of Economics, Springer, vol. 85(1), pages 39-63, July.
    17. Hurley, Terrance M., 2016. "Slutsky, Let Me Introduce You to Arrow-Pratt: Competitive Price Effects with Uncertain Production," Staff Papers 250204, University of Minnesota, Department of Applied Economics.
    18. Huang-Meier, Winifred & Freeman, Mark C. & Mazouz, Khelifa, 2015. "Why are aggregate equity payouts pro-cyclical?," Journal of Macroeconomics, Elsevier, vol. 44(C), pages 98-108.
    19. Guy Meunier, 2014. "Risk Aversion and Technology Portfolios," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(4), pages 347-365, June.
    20. Rulon D. Pope & Richard E. Just, 1977. "On The Competitive Firm Under Production Uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(2), pages 111-118, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:24:y:1987:i:2:p:163-166. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.