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Nonlinear Pricing in General Equilibrium Models with Joint Production

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  • Kazuya Kamiya

Abstract

This paper considers general equilibrium models of public utilities which produce either public goods or private goods. In the models, cases of increasing returns are not a priori excluded. The products of the public utilities and their costs are allocated to the consumers according to a rule that is dependent on information communicated to the public utilities. We show that if the public utilities follow a nonlinear pricing rule, the equilibrium allocations are always Pareto‐optimal. Moreover, the message space is of finite dimensions. JEL Classification Numbers: D51, D60, H41, H42.

Suggested Citation

  • Kazuya Kamiya, 2001. "Nonlinear Pricing in General Equilibrium Models with Joint Production," The Japanese Economic Review, Japanese Economic Association, vol. 52(1), pages 21-34, March.
    • Handle: RePEc:bla:jecrev:v:52:y:2001:i:1:p:21-34
    DOI: 10.1111/1468-5876.00178
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    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D60 - Microeconomics - - Welfare Economics - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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