Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jan, 1963, Volume 31, Issue 1

Notes and Comments: Uncertainty, Instability, Expected Profit<243:UIEP>2.0.CO;2-#
p. 243-247

Clem Tisdell

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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