Any TU-game can be generated from a production economy with indivisible labor inputs. An equilibrium of that economy always exists after a central intervention that taxes income and subsidizes production. The set of equilibrium allocations corresponding to the smallest income tax coincides with...

In a general equilibrium model with at least three goods, a perfectly price-discriminating monopoly (PDM) selects an inefficient production plan even if consumers are homogenous, their preferences are representable by quasi-linear utilities, and their characteristics are known to the monopolist....