A Note on Activity-Level and Uncertainty
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A Note on Activity-Level and Uncertainty
Schulenburg, J.-Matthias Graf von der
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 103 (1983), Iss. 5 : pp. 485–496
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Schulenburg, J.-Matthias Graf von der
Cited By
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Marktprozeß und Marktstruktur bei unvollständigen Informationen
Graf v.d. Schulenburg, J.-Matthias
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 113 (1993), Iss. 4 P.509
https://doi.org/10.3790/schm.113.4.509 [Citations: 1]
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Abstract
The paper examines the impact of uncertainty on the activity-level of decision-makers. A basic model presented and discussed in this paper leads to some general rules concerning the optimal activity-level under uncertainty in comparison to the one under certainty. The study shows in contrast to a general belief that given certain conditions the activity-level of riskaverse decision-makers might even be greater than the one under certainty. Flat taxes, subsidies and transfer payments conditional to the occurrence of certain states of nature may therefore be suited as incentives to increase the activity-level of firms and individuals