MARKET EQUILIBRIUM WITH NONCONVEX TECHNOLOGIES

Antonio Villar

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: An economy with l commodities, m consumers and n firms is considered. Consumers are modelled in a standard way. It is assumed that the jth firm has a closed and comprehensive production set, Y with O E Y. The equilibrium of firms appears associated to the notion of a pricing rule (a mapping applying the boundary of a firm's production set on the price space, whose graph describes the pairs prices-production which a firm finds "acceptable"). We show that when firms follow loss-free and upper hemicontinuous, convex-valued pricing rules, a price vector and an allocation exist, such that: a) Consumers maximize their preferences subject to their budget constraints; b) Every firm is in equilibrium; and c) All markets clear.

Pages: 31 pages
Date: 1991-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published by Ivie

Downloads: (external link)
http://www.ivie.es/downloads/docs/wpasad/wpasad-1991-03.pdf Fisrt version / Primera version, 1991 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:1991-03

Access Statistics for this paper

More papers in Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) Contact information at EDIRC.
Bibliographic data for series maintained by Departamento de Edición ().