Price Uncertainty in Linear Production Situations

J.P.M. Suijs

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Abstract

This paper analyzes linear production situations with price uncertainty, and shows that the corrresponding stochastic linear production games are totally balanced. It also shows that investment funds, where investors pool their individual capital for joint investments in financial assets, fit into this framework. For this subclass, the paper provides a procedure to construct an optimal investment portfolio. Furthermore it provides necessary and sufficient conditions for the proportional rule to result in a core-allocation.
Original languageEnglish
Place of PublicationTilburg
PublisherAccounting
Number of pages18
Volume1999-91
Publication statusPublished - 1999

Publication series

NameCentER Discussion Paper
Volume1999-91

Keywords

  • linear production
  • stochastic cooperative games
  • investment funds

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