On a general existence theorem for marginal cost pricing equilibria
type: Item
instance of: scholarly article
title: On a general existence theorem for marginal cost pricing equilibria
zbMATH Open document ID: 0602.90027
DOI: 10.1016/0022-0531(86)90124-9
author: Donald J. Brown
author: Geoffrey Heal
author: M. Ali Khan
author: Rajiv Vohra
published in: Journal of Economic Theory
publication date: 1986-01-01T00:00:00Z
full work available at URL: d0724.pdf
review text: If in the Arrow-Debreu model of competitive equilibrium non-convexities of production technologies are permitted, an appropriate generalization of the equilibrium concept is one which postulates marginal cost pricing by firms. This paper contains a generalization of the earlier results on the existence of these marginal cost pricing equilibria. In particular, the paper utilizes the tangent and normal cones at points of production sets in the description of the marginal cost pricing rule in contrast to other less general concepts in earlier work. In addition to the existence theorem the paper provides a new sufficient condition for productive efficiency of marginal cost pricing equilibria.
Mathematics Subject Classification ID: 91B50
Mathematics Subject Classification ID: 91B24
zbMATH DE Number: 3972562
zbMATH Keywords: competitive equilibrium non-convexities of production technologies
zbMATH Keywords: productive efficiency
zbMATH Keywords: marginal cost pricing equilibria
MaRDI profile type: Publication
OpenAlex ID: W2149047254
cites work: The Existence of Marginal Cost Pricing Equilibria with Increasing Returns
cites work: On marginal cost pricing with given tax-subsidy rules
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cites work: The Existence of "Compensated Equilibrium" and the Structure of the Pareto Efficiency Frontier
cites work: Clarke's tangent cones and the boundaries of closed sets in Rn
description: scientific article; zbMATH DE number 3972562