Journal Title

American Economist

Publication Date

Fall 1999


In this paper, a general model of the competitive firm's behavior under output and factor (total) price uncertainty is developed to evaluate the role of market interdependencies in analyzing long-run equilibrium conditions and comparative statics analysis of increased uncertainty in output and input prices. It is demonstrated that the results shown in the literature are a special case of the findings reported here and market interdependencies play a central role in determining the firm's long-run equilibrium under uncertainty.

Document Type