Existence of equilibria when firms follow bounded losses pricing rules

Jean-Marc Bonnisseau and Bernard Cornet

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: 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.

Keywords: General equilibrium theory; increasing returns; pricing rules; existence (search for similar items in EconPapers)
Date: 1988
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Published in Journal of Mathematical Economics, 1988, 17 (2-3), pp.119-147. ⟨10.1016/0304-4068(88)90003-1⟩

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Related works:
Journal Article: Existence of equilibria when firms follow bounded losses pricing rules (1988)
Working Paper: Existence of equilibria when firms follow bounded losses pricing rules (1988)
Working Paper: Existence of equilibria when firms follow bounded losses pricing rules (1988)
Working Paper: Existence of equilibria when firms follow bounded losses pricing rules (1986)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00187223

DOI: 10.1016/0304-4068(88)90003-1

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