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The Marginal Pricing Rule in Economies with Infinitely Many Commodities

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  • Jean-Marc Bonnisseau

    (University of Paris 1)

Abstract

In this paper, we consider an economy with infinitely many commodities and non-convex production sets. We propose a definition of the marginal pricing rule which allows us to encompass the case of smooth and convex production sets. We also show the link with the definition used in a finite dimensional setting where the marginal pricing rule is defined by means of the Clarke's normal cone. We prove the existence of a marginal pricing equilibrium under assumptions similar to the one given for an economy with a finite set of commodities.

Suggested Citation

  • Jean-Marc Bonnisseau, 2000. "The Marginal Pricing Rule in Economies with Infinitely Many Commodities," Econometric Society World Congress 2000 Contributed Papers 0262, Econometric Society.
    • Handle: RePEc:ecm:wc2000:0262
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    References listed on IDEAS

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    1. repec:dau:papers:123456789/5649 is not listed on IDEAS
    2. CORNET, Bernard, 1988. "Marginal cost pricing and Pareto optimality," LIDAM Discussion Papers CORE 1988037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    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. Cornet, B., 1986. "The second welfare theorem in nonconvex economies," LIDAM Discussion Papers CORE 1986030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. 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.
    6. Jouini, Elyes, 1989. "A remark on Clarke's normal cone and the marginal cost pricing rule," Journal of Mathematical Economics, Elsevier, vol. 18(1), pages 95-101, February.
    7. BEWLEY, Truman F., 1972. "Existence of equilibria in economies with infinitely many commodities," LIDAM Reprints CORE 122, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Chris Shannon., 1994. "Increasing Returns in Infinite Horizon Economies," Economics Working Papers 94-232, University of California at Berkeley.
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    15. Bonnisseau, Jean-Marc & Meddeb, Moncef, 1999. "Existence of equilibria in economies with increasing returns and infinitely many commodities," Journal of Mathematical Economics, Elsevier, vol. 31(3), pages 287-307, April.
    16. Bonnisseau, Jean-Marc & Cornet, Bernard, 1990. "Existence of Marginal Cost Pricing Equilibria in Economies with Several Nonconvex Firms," Econometrica, Econometric Society, vol. 58(3), pages 661-682, May.
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    Cited by:

    1. M. Ali Khan, 2007. "Perfect Competition," PIDE-Working Papers 2007:15, Pakistan Institute of Development Economics.

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    More about this item

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D59 - Microeconomics - - General Equilibrium and Disequilibrium - - - Other

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