Mark-up and Capital Structure of the Firm facing Uncertainty

Jean-Bernard Chatelain (1)

1 CES - Centre d'économie de la Sorbonne

This note shows that, with pre-set price and capital decisions of firms facing uncertainty and financial market imperfections, price, mark up and the expected degree of capacity utilization (resp. capital) decreases (resp. increases) with the firm internal net worth.

Mots clés: Capital; Pricing; capital market imperfections

Domaines: Economies et finances

Jean-Bernard Chatelain. Mark-up and Capital Structure of the Firm facing Uncertainty. Economics Letters, 2001, 74, pp.99-105. ⟨10.1016/S0165-1765(01)00525-0⟩. ⟨halshs-00119409⟩