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Equilibria with Increasing Returns: Sufficient Conditions on Bounded Allocations

Author

Listed:
  • Jean-Marc Bonnisseau

    (Axe Economie mathématique et jeux - CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Alexandrine Jamin

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper deals with the existence of marginal pricing equilibrium or equilibrium with general pricing rules in an economy with increasing returns to scale or more general types of non convexities in production. Its main contribution is to demonstrate existence of equilibrium with bounded loss and survival assumptions required only on a bounded subset of production allocations. Furthermore, we require only a weakened form of the free-disposal assumption and we also allow non positive prices.

Suggested Citation

  • Jean-Marc Bonnisseau & Alexandrine Jamin, 2008. "Equilibria with Increasing Returns: Sufficient Conditions on Bounded Allocations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00309536, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00309536
    DOI: 10.1111/j.1467-9779.2008.00395.x
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    Cited by:

    1. Jean-Marc Bonnisseau & Lalaina Rakotonindrainy, 2017. "Existence of equilibrium in OLG economies with increasing returns," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(1), pages 111-129, January.

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