On a strictly convex and strictly sub-additive cost function with positive fixed cost

We investigate the existence of a strictly convex and strictly sub-additive cost function with positive fixed cost. If there is a positive fixed cost, any cost function can not be super-additive, and concavity (including linearity) of cost function implies strict sub-additivity. Then, does there exist a strictly convex and strictly sub-additive cost function? We will present such a cost function. It is close to a linear function although it is strictly convex.

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Year of publication:	2017-08-03
Authors:	Tanaka, Yasuhito ; Hattori, Masahiko

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Tanaka, Yasuhito and Hattori, Masahiko (2017): On a strictly convex and strictly sub-additive cost function with positive fixed cost.
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets
Source:	BASE

Persistent link: https://www.econbiz.de/10015257033