Cost Functions Under Production Uncertainty
刻画了在生产不确定时,与期望效用最大化一致的成本函数特征,指出在风险规避下不能仅用期望产出作为成本最小化的约束,并给出了一些无风险偏好的特例。
Abstract We characterize the cost functions which would be consistent with expected utility maximization when production is uncertain. It is not generally possible, assuming risk aversion, to use only expected output as the constraint in a cost minimization problem. In some leading cases, cost functions consistent with expected utility maximization are particularly useful because they are devoid of risk preferences.