Existence of equilibria with a tight marginal

Jean-Marc BONNISSEAU () and Bernard Cornet

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: This paper deals with the existence of marginal pricing equilibria when it is defined by using a new and tighter normal cone introduced by B. Cornet and M.O. Czarnecki. The main interest of this new definition of the marginal pricing rule comes from the fact that it is more precise in the sense that the set of prices satisfying the condition is smaller than the one given by the Clarke's normal cone. The counterpart is that it is not convex valued, which leads to some mathematical difficulties in the existence proof. The result is obtained through an approximation argument under the same assumptions as in the previous existence results.

Keywords: General economic equilibrium; increasing returns; marginal pricing rule; existence. (search for similar items in EconPapers)
JEL-codes: C62 D50 D51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Date: 2006-01
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Persistent link: http://EconPapers.repec.org/RePEc:mse:wpsorb:b06022

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