Document Type
Discussion Paper
Publication Date
12-1-1984
CFDP Number
724
CFDP Pages
21
Abstract
We report a generalization of recent results on the existence of marginal cost pricing equilibria (MCPE) in economies with an increasing returns to scale industry. Our result makes no ad hoc assumptions which force the equilibrium to be on the efficiency frontier of the aggregate production possibility set. We also present an additional condition under which our MCPE are productivity efficient in the aggregate.
Recommended Citation
Brown, Donald J.; Heal, Geoffrey M.; Khan, M. Ali; and Vohra, Rajiv, "On a General Existence Theorem for Marginal Cost Pricing Equilibria" (1984). Cowles Foundation Discussion Papers. 964.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/964