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Unpublished Paper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
3-1-2001
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

Abstract

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)
Available at: http://works.bepress.com/jeffrey_kline/3/