A Practical Short-run Approach to Market Equilibrium

Anthony Horsley and Andrew Wrobel

STICERD - Theoretical Economics Paper Series from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: The "short-run approach" calculates long-run producer optima and general equilibria bybuilding on short-run solutions to the producer's profit maximization problem and onprofit-based valuation of the fixed inputs. We outline this method and illustrate it on anexample of peak-load pricing.

Keywords: general equilibrium; fixed-input valuation; nondifferentiable joint costs; Wong-Viner Envelope Theorem; peak-load pricing (search for similar items in EconPapers)
JEL-codes: D24 D41 D58 (search for similar items in EconPapers)
Date: 2005-04
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Related works:
Working Paper: A practical short-run approach to market equilibrium (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:stitep:488

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