TY - JOUR
T1 - Random input price and the theory of the competitive cooperative firm
AU - Haruna, Shoji
PY - 1987/3
Y1 - 1987/3
N2 - 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.
AB - 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.
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U2 - 10.1016/0147-5967(87)90042-4
DO - 10.1016/0147-5967(87)90042-4
M3 - Article
AN - SCOPUS:45949115857
VL - 11
SP - 81
EP - 95
JO - Journal of Comparative Economics
JF - Journal of Comparative Economics
SN - 0147-5967
IS - 1
ER -