Price Stabilization and the Risk-Averse Firm

Robert Chambers, J. Quiggin

    Research output: Contribution to journalArticle

    7 Citations (Scopus)

    Abstract

    An analytically simple and tractable approach to firm-level welfare analysis of complete and partial mean-preserving price stabilization for producers with general risk-averse preferences facing a stochastic technology is developed. Necessary and sufficient conditions for price stabilization to be welfare enhancing are derived under different assumptions of the producer's preferences and the producer's technology. Existing stabilization results for the risk-averse firm are shown to be corollaries of these more general results.
    Original languageEnglish
    Pages (from-to)336-347
    JournalAmerican Journal of Agricultural Economics
    Volume85
    Issue number2
    DOIs
    Publication statusPublished - 2003

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