A Practical Short-run Approach to Market Equilibrium

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.

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Year of publication:	2005-04
Authors:	Horsley, Anthony ; Wrobel, Andrew J
Institutions:	Suntory and Toyota International Centres for Economics and Related Disciplines, LSE
Subject:	general equilibrium \| fixed-input valuation \| nondifferentiable joint costs \| Wong-Viner Envelope Theorem \| peak-load pricing

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Extent:	application/pdf
Series:	STICERD - Theoretical Economics Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Classification:	D24 - Production; Capital and Total Factor Productivity; Capacity ; D41 - Perfect Competition ; D58 - Computable and Other Applied General Equilibrium Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005670731