Publisher's Synopsis
Theoretical research in the area of production and decision theory is often guided by the mathematical elegance of the problem, such as the existence and uniqueness of a solution or the availability of a theorem for solving the problem.;In contrast, this book screens and develops the theory according to its potential applicability to real world issues. The analysis focuses particularly on the question of whether firms produce and invest more, the same or less under conditions of uncertainty. Four theoretic approaches are derived to assess the impact of uncertainty on production - risk attitude, cost and demand conditions, asymmetric costs of disequilibria, and asymmetries in the upward and downward flexibility of preliminary decisions.
