This article summarizes some recent research that explores the role of customer satisfaction in the fortunes of retailers. The goal of the research was to layout precisely (mathematically) how productivity, cost and demand are impacted when a retailer changes labor and/or capital expenditures,...

In this short paper we reformulate and extend Sandmo's (3) well known analysis of “capital risk” to include the effects of savings uncertainty on both the savings decision and the labor-leisure decision

This paper analyzes the labor supply decision of a single economic agent within the expected utility framework. Two formulations of the problem are considered: pure income uncertainty and wage rate uncertainty. In each case, the effects on the labor supply decision of changes in both expected...

Social scientists are continually confronted with the problem of formulating models which describe how individuals make choices among alternative courses of action with uncertain consequences.Economists have developed a class of models which seem to deal particularly well with problems of this...

In this paper we study the relationship between costs, input prices and activity levels in a sample of medium sized, city police departments for the years 1968, 69, 71 and 73. Our focus is on determining the functional structure of law enforcement production technology

We discuss here the implications that arise for the fundamental duality relationships given by Roy's Identity (1943) and Shephard's Lemma (1953) when the underlying consumer choice problem is dynamic and involves uncertainty

In this paper we provide suffic ient condi tions, which, when combined with recent developments in the theory of exact aggregation, permit estimation of group specific demand systems when micro-level information is unavailable. We illustrate the approach by estimating group specific cost of...

In this note we correct several misunderstandings which have arisen since publication of our earlier paper “Law Enforcement Agencies as Multiproduct firms: An Econometric Investigation of Production Costs.” These misconceptions arise regularly in empirical applications of economic theory to...

We use a general model to analyze the optimal intertemporal pricing policy for a monopolist when current and past output play a role in determining future cost and/or demand conditions through, "experience," in production and/or in consumption. As would be expected, the optimal price path...