General equilibrium and social choice with increasing returns

Graciela Chichilnisky

MPRA Paper from University Library of Munich, Germany

Abstract: For any intransitive community preference, we construct a non-convex economy where all the marginal cost pricing general equilibria are Pareto inefficient (theorem 3.2). The result is valid without requiring a fixed income distribution rule (corollary 3.3). Intransitive community preferences are a frequent occurrence (theorem 3.1): necessary and sufficient conditions for transitivity of the community preference fail in a set which is open and dense in the space of individual preferences with a standard topology.

Keywords: general equilibrium; pareto efficient; pareto inefficient; community preference; income distribution; topology; transitivity; market efficiency (search for similar items in EconPapers)
JEL-codes: D61 D71 E24 (search for similar items in EconPapers)
Date: 1990
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Citations: View citations in EconPapers (3)

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