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Persistent link: https://www.econbiz.de/10009141858
We construct a partial equilibrium model of a risk averse monopolist who faces an uninsurable uncertain foreign demand and a constant marginal cost, and makes an ex-ante production plan, committing ex-post to the ex-ante price. Optimal government intervention is considered when the good is only...
Persistent link: https://www.econbiz.de/10009142007