Separation results, as they are usually understood, refer to conditions under which a firm's production decisions are independent of its risk attitudes. Well-understood situations where separation occurs typically include those where technically feasible production opportunities are replicable...

This paper considers the simple neoclassical economics of price gaps in the absence of income effects. Our guiding principle is that price gaps reflect a fundamental economic principle: buy low and sell high. It is demonstrated that neoclassical theory makes clear and economically testable...

This paper studies the tendency for incomplete preference structures to be associated with equilibrium price indeterminacies in an Arrow–Debreu–McKenzie state-contingent setting. It is shown that the presence of a sufficiently smooth stochastic production technology is inconsistent with...