Abstract
The strongest behavioral assumption that we make is competitive profit maximization. In this chapter we discuss the resulting profit function and relate it to the other nine representations of technology. In particular, duality theorems between each of the four distance functions and the profit function are presented. For this reason we were tempted to add a subtitle to this chapter: “Shephard Meets Hotelling.” In addition, a number of derivative properties are reported.
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© 1995 Springer Science+Business Media New York
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Färe, R., Primont, D. (1995). The Profit Function. In: Multi-Output Production and Duality: Theory and Applications. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-0651-1_6
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DOI: https://doi.org/10.1007/978-94-011-0651-1_6
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-4284-0
Online ISBN: 978-94-011-0651-1
eBook Packages: Springer Book Archive