Production and Decision Theory Under Uncertainty.

Abstract

Part 1 Introduction: the impact of uncertainty - a theoretical topic of high relevance for real world behaviour. Part 2 Theoretical: interpreting reported expectations as optimal decisions (actions) under uncertainty expected utility maximization and its alternatives general propositions on the influence of uncertainty on optimal decisions the theory of firms under uncertainty (one period models for optimal output or price decisions) inventory models under uncertainty the impact of uncertainty on the optimal choice of inputs ex-post flexibility of production decisions summing up the results of the theoretical models decision theory and empirical evidence. Part 3 Empirical information on the relevance of the models and on the range of critical parameters: empirical evidence on the function of inventories (and order backlogs) under uncertainty empirical evidence on whether prices are an action variable, a random variable or a relatively stable exogenous variable towards a realistic description of the decision process in modern industrial society the main findings of the book.