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CERTAINTY EQUIVALENT PRICES AND PRODUCER WELFARE UNDER OUTPUT PRICE UNCERTAINTY

Producer welfare indices under price uncertainty are derived using the concept of certainty equivalent prices. In this approach the marginal cost function is used instead of the ex-ante supply function; the effects of uncertainty and risk preference are captured by certainty equivalent prices. Implications for welfare evaluation are discussed.
Year of publication:
1989
Authors: Tsur, Yacov ; Zilberman, David
Institutions: Department of Applied Economics, College of Agricultural, Food, and Environmental Sciences
Subject: Risk and Uncertainty
Extent:
application/pdf
Series:
Type of publication: Book / Working Paper
Notes:
The text is part of a series Department of Applied Economics>Staff Papers Number 13562
Source:
Persistent link: https://www.econbiz.de/10005807145
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