Existence of marginal pricing equilibria in economies with externalities and non-convexities (Q1602937)

A general equilibrium model with externalities and non-convex production sector is considered and the existence of a general equilibrium under certain assumptions is proved. It is assumed that the behaviour of the producers is given by the marginal pricing rule, which generalizes the pricing rule used in the model without externality. The results of the paper encompasse the existence results with non-convex production sector without externality and those with externality and convex conditional production sets.