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Notes and Comments: Uncertainty, Instability, Expected Profit
Clem Tisdell
Abstract
From the simple model used here, it is obvious that the effect of price instability upon the firm's expected profit depends on the degree to which prices can be predicted and the cost at which production adjustment can take place. This point can be made apparent by comparing the results of this simple model with the results of Oi's model. The conclusions from this model suggest that a previous price instability conclusion of Oi's should be qualified.
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