Do profit maximizers take cold showers?Bond Business School Publications
Date of this Version3-1-2001
Document TypeWorking Paper
AbstractA 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 InformationNeil Campbell and Jeffrey J. Kline. "Do profit maximizers take cold showers?" (2001)
Available at: http://works.bepress.com/jeffrey_kline/3/