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Non-existence of equilibria with free elimination

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  • Hans-Jürgen Salchow

    (CERMSEM - CEntre de Recherche en Mathématiques, Statistique et Économie Mathématique - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

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," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00195903, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00195903
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00195903
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    References listed on IDEAS

    as
    1. Mas-Colell,Andreu, 1990. "The Theory of General Economic Equilibrium," Cambridge Books, Cambridge University Press, number 9780521388702.
    2. Cornet, Bernard, 1988. "General equilibrium theory and increasing returns : Presentation," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 103-118, April.
    3. Jouini, Elyes, 1992. "Existence of equilibria in nonconvex economies without free disposal," Economics Letters, Elsevier, vol. 38(1), pages 37-42, January.
    4. Hardle, Wolfgang & Hildenbrand, Werner & Jerison, Michael, 1991. "Empirical Evidence on the Law of Demand," Econometrica, Econometric Society, vol. 59(6), pages 1525-1549, November.
    5. 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).
    6. Gerard Debreu, 1961. "New Concepts and Techniques for Equilibrium Analysis," Cowles Foundation Discussion Papers 129, Cowles Foundation for Research in Economics, Yale University.
    7. repec:dau:papers:123456789/54 is not listed on IDEAS
    8. 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.
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    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; Libre disposition; rendements d'échelle croissants; tarification marginale; production non-convex;
    All these keywords.

    JEL classification:

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

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