We consider a general equilibrium model of an economy with increasing returns to scale or more general types of non-convexity in production. The firms are instructed to set their prices according to general pricing rules which are supposed to have bounded losses. This includes the case of loss-free pricing rules hence, in particular, profit maximizing and average cost pricing. As for the marginal (cost) pricing rule, the bounded losses assumption for a firm is shown to be equivalent to the ‘star-shapedness' of its production set. This paper reports a general existence result in this model.
Publié le : 1988-07-05
Classification:
General equilibrium theory,
increasing returns,
pricing rules,
existence,
[MATH.MATH-OC]Mathematics [math]/Optimization and Control [math.OC],
[SHS.ECO]Humanities and Social Sciences/Economies and finances
@article{hal-00187223,
author = {Bonnisseau, Jean-Marc and Cornet, Bernard},
title = {Existence of equilibria when firms follow bounded losses pricing rules},
journal = {HAL},
volume = {1988},
number = {0},
year = {1988},
language = {en},
url = {http://dml.mathdoc.fr/item/hal-00187223}
}
Bonnisseau, Jean-Marc; Cornet, Bernard. Existence of equilibria when firms follow bounded losses pricing rules. HAL, Tome 1988 (1988) no. 0, . http://gdmltest.u-ga.fr/item/hal-00187223/