On a General Existence Theorem for Marginal Cost Pricing Equilibria

We report a generalization of recent results on the existence of marginal cost pricing equilibria (MCPE) in economies with an increasing returns to scale industry. Our result makes no ad hoc assumptions which force the equilibrium to be on the efficiency frontier of the aggregate production possibility set. We also present an additional condition under which our MCPE are productivity efficient in the aggregate.

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Year of publication:	1984-12
Authors:	Brown, Donald J. ; Heal, Geoffrey M. ; Khan, M. Ali ; Vohra, Rajiv
Institutions:	Cowles Foundation for Research in Economics, Yale University

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Extent:	application/pdf
Series:	Cowles Foundation Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	CFP 653. Published in Journal of Economic Theory (April 1986), 38(2): 371-379 The price is None Number 724 20 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004990779