Distributive production sets and equilibria with increasing returns
A production plan and a price system satisfy voluntary trading if, at these prices, it is not more profitable to produce less of some of the outputs. This concept is defined and used in a general equilibrium framework in a companion paper of the authors [ibid. 17, No.2/3, 209-230 (1988; Zbl 0657.90018)]. The present paper gives a necessary and sufficient condition on multiproduct production sets under which average cost pricing is compatible with voluntary trading. This condition defines a class of production sets, whose properties are related to supportable cost functions and to Aumann-Shapley average cost pricing.
scientific article; zbMATH DE number 4110417
scientific article