SFB 303 Discussion Paper No. A - 293
Author: Brown, Donald
Title: Equilibrium Analysis with Nonconvex Technologies
Abstract: The basic properties of the classical Arrow-Debreu model of a Walrasian
economy consist of the existence of competitive equilibria; the first and
second welfare theorems; the computation of equilibria; and the local
uniqueness and finiteness of equilibria. This paper surveys the implications
of nonconvex technologies for each of these properties in general
equilibrium models, where the behavior of firms with nonconvex production
sets is characterized by pricing rules such as marginal cost pricing,
average cost pricing, and two-part tariffs.
Creation-Date: May 1990
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