Rubinstein2005-page102

Rubinstein2005-page102 - convenience. I dont think this is...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
October 21, 2005 12:18 master Sheet number 100 Page number 84 84 Lecture Seven Figure 7.3 Cost Minimization. are various empirically plausible alternative targets for a producer. For example, it seems that the goal of some producers is to increase production subject to not incurring a loss. Some ±rms are managed so as to increase the managers’ salaries with less regard for the level of pro±ts. I sometimes wonder why this difference exists between the gen- erality of consumer preferences and the narrowness of the producer objectives. It might be that this is simply the result of mathematical
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: convenience. I dont think this is a result of an ideological con-spiracy. But, by making prot maximization the key assumption about producer behavior, do we not run the risk that students will interpret it to be the exclusive normative criterion guiding a rms actions? Bibliographic Notes Recommended readings : Kreps 1990, Chapter 8; Mas-Colell et al. 1995, Chapter 5, AD,G. The material in this lecture (apart from the discussion) is standard and can be found in any microeconomics textbook. Debreu (1959) is an excellent source....
View Full Document

This note was uploaded on 12/29/2011 for the course ECO 443 taught by Professor Aswa during the Fall '10 term at SUNY Stony Brook.

Ask a homework question - tutors are online