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Unpublished Paper
Do profit maximizers take cold showers?
Bond Business School Publications
  • Neil Campbell
  • Jeffrey J. Kline, Bond University
Date of this Version
Document Type
Working Paper
Publication Details
Neil A. Campbell and Jeffrey J. Kline (2001) Do profit maximizers take cold showers?

School of Business Working Paper ; No. 1, Mar. 2001

© Copyright Neil A. Campbell, Jeffrey J. Kline and the School of Business, Bond University

A firm takes a "cold shower" if removal of a protective subsidy induces investment in a cost-reducing technology. We show that if the investment lowers marginal cost everywhere, then profit maximizers never take cold showers. However, if the investment does not lower marginal cost everywhere, a profit maximizer may take a cold shower.
Citation Information
Neil Campbell and Jeffrey J. Kline. "Do profit maximizers take cold showers?" (2001)
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