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Non-existence of equilibria with free elimination

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  • Hans-Jürgen Salchow

Abstract

This work is concerned in the existence problem of equilibria for economies with increasing returns to scale. The consequences of relaxing the free disposal assumption are investigated. It is sown that the free disposal assumption can not be dropped, not even relaxed to the assumption of free elimination, without risking that equilibria may fail to exist. This may give new insight to the work of Giraud (2000) and Jouini (1992), because they proved the existence of equilibria for economies without free disposal assuming the production sets to verify (even weaker forms of) free elimination

Suggested Citation

  • Hans-Jürgen Salchow, 2005. "Non-existence of equilibria with free elimination," Cahiers de la Maison des Sciences Economiques b05057, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:mse:wpsorb:b05057
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    File URL: https://halshs.archives-ouvertes.fr/halshs-00195903
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    References listed on IDEAS

    as
    1. GIRAUD, Gaël, 2000. "An algebraic index theorem for non-smooth economies," LIDAM Discussion Papers CORE 2000016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Jouini, Elyes, 1992. "Existence of equilibria in nonconvex economies without free disposal," Economics Letters, Elsevier, vol. 38(1), pages 37-42, January.
    3. Bonnisseau, Jean-Marc & Cornet, Bernard, 1990. "Existence of Marginal Cost Pricing Equilibria: The Nonsmooth Case," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(3), pages 685-708, August.
    4. Beato, Paulina & Mas-Colell, Andreu, 1985. "On marginal cost pricing with given tax-subsidy rules," Journal of Economic Theory, Elsevier, vol. 37(2), pages 356-365, December.
    5. Mas-Colell,Andreu, 1990. "The Theory of General Economic Equilibrium," Cambridge Books, Cambridge University Press, number 9780521388702.
    6. Hardle, Wolfgang & Hildenbrand, Werner & Jerison, Michael, 1991. "Empirical Evidence on the Law of Demand," Econometrica, Econometric Society, vol. 59(6), pages 1525-1549, November.
    7. Cornet, Bernard, 1988. "General equilibrium theory and increasing returns : Presentation," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 103-118, April.
    8. Gerard Debreu, 1961. "New Concepts and Techniques for Equilibrium Analysis," Cowles Foundation Discussion Papers 129, Cowles Foundation for Research in Economics, Yale University.
    9. repec:dau:papers:123456789/54 is not listed on IDEAS
    10. Shafer, Wayne J, 1974. "The Nontransitive Consumer," Econometrica, Econometric Society, vol. 42(5), pages 913-919, September.
    11. Hamano, Tadashi, 1994. "On the existence of equilibria without convexity or free disposal on production technologies," Journal of Mathematical Economics, Elsevier, vol. 23(6), pages 565-583, November.
    12. Kamiya, Kazuya, 1988. "On the survival assumption in marginal (cost) pricing," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 261-273, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Free disposal; increasing returns to scale; marginal pricing; non-convex production;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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