Abstract
This paper examines a competitive cooperative firm under input-price uncertainty, comparing it with a capitalist firm. We show that the firm with input-price uncertainty produces output with a smaller capital-labor ratio than that of the certainty equivalent twin. Further, we show that the effects of a change in uncertainty on capital, labor, and output are the same as the effects of a change in wage; however, the effects of output-price changes are exactly the opposite. In general, we cannot infer results concerning the behavior of the cooperative firm from the behavior of the capitalist firm.
| Original language | English |
|---|---|
| Pages (from-to) | 81-95 |
| Number of pages | 15 |
| Journal | Journal of Comparative Economics |
| Volume | 11 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - Mar 1987 |
ASJC Scopus subject areas
- Economics and Econometrics
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Cite this
Haruna, S. (1987). Random input price and the theory of the competitive cooperative firm. Journal of Comparative Economics, 11(1), 81-95. https://doi.org/10.1016/0147-5967(87)90042-4