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Nonparametric market supply with variable participants

Author

Listed:
  • Christopher P. Chambers

    (Georgetown University)

  • John Rehbeck

    (The Ohio State University)

Abstract

Research estimating market supply often focuses on parametric models. In this paper, we study a non-parametric approach to market supply. We characterize the necessary and sufficient conditions of profit maximization for aggregate market behavior when individual firm supply is unobservable and participants on the supply side vary. We also show how the result changes as additional properties are added such as constraints on net outputs, non-negative profits, and increasing production sets.

Suggested Citation

  • Christopher P. Chambers & John Rehbeck, 2022. "Nonparametric market supply with variable participants," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(3), pages 899-921, October.
    • Handle: RePEc:spr:joecth:v:74:y:2022:i:3:d:10.1007_s00199-021-01382-5
    DOI: 10.1007/s00199-021-01382-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Profit maximization; Revealed preference; Aggregation; Firm entry/exit;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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