IDEAS home Printed from https://ideas.repec.org/a/spr/joecth/v33y2007i3p579-589.html
   My bibliography  Save this article

The marginal pricing rule revisited

Author

Listed:
  • Jean-Marc Bonnisseau
  • Bernard Cornet
  • Marc-Olivier Czarnecki

Abstract

The purpose of the paper is to introduce a tighter definition for the marginal (cost) pricing rule. By means of an example, we illustrate the improvements that one gets with the new definition with respect to the former one using Clarke's normal cone, and we discuss its consequences in terms of the existence of equilibria.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jean-Marc Bonnisseau & Bernard Cornet & Marc-Olivier Czarnecki, 2007. "The marginal pricing rule revisited," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(3), pages 579-589, December.
    • Handle: RePEc:spr:joecth:v:33:y:2007:i:3:p:579-589
    DOI: 10.1007/s00199-006-0160-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00199-006-0160-0
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00199-006-0160-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cornet, B., 1984. "Existence of equilibria in economies with increasing returns," LIDAM Discussion Papers CORE 1984007, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. M. Ali Khan, 1999. "The Mordukhovich Normal Cone and the Foundations of Welfare Economics," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(3), pages 309-338, July.
    3. repec:dau:papers:123456789/5649 is not listed on IDEAS
    4. repec:dau:papers:123456789/5646 is not listed on IDEAS
    5. 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.
    6. 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).
    7. 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.
    8. Khan, M Ali, 1999. "The Mordukhovich Normal Cone and the Foundations of Welfare Economics," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(3), pages 309-338.
    9. Guesnerie, Roger, 1975. "Pareto Optimality in Non-Convex Economies," Econometrica, Econometric Society, vol. 43(1), pages 1-29, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean-Marc Bonnisseau & Bernard Cornet, 2006. "Existence of equilibria with a tight marginal," Cahiers de la Maison des Sciences Economiques b06022, Université Panthéon-Sorbonne (Paris 1).
    2. J. M. Bonnisseau & A. Jamin, 2008. "Equilibria with Increasing Returns: Sufficient Conditions on Bounded Production Allocations," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(6), pages 1033-1068, December.
    3. Bonnisseau, J.-M. & Cornet, B., 2008. "Existence of equilibria with a tight marginal pricing rule," Journal of Mathematical Economics, Elsevier, vol. 44(7-8), pages 613-624, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bonnisseau, J.-M. & Cornet, B., 2008. "Existence of equilibria with a tight marginal pricing rule," Journal of Mathematical Economics, Elsevier, vol. 44(7-8), pages 613-624, July.
    2. Jean-Marc Bonnisseau & Bernard Cornet & Marc-Olivier Czarnecki, 2007. "The marginal pricing rule revisited," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(3), pages 579-589, December.
    3. Jean-Marc Bonnisseau & Bernard Cornet, 2006. "Existence of equilibria with a tight marginal," Cahiers de la Maison des Sciences Economiques b06022, Université Panthéon-Sorbonne (Paris 1).
    4. Jean-Marc Bonnisseau, 2000. "The Marginal Pricing Rule in Economies with Infinitely Many Commodities," Econometric Society World Congress 2000 Contributed Papers 0262, Econometric Society.
    5. Antonio Villar, 1994. "Existence and efficiency of equilibrium in economics with increasing returns to scale: an exposition," Investigaciones Economicas, Fundación SEPI, vol. 18(2), pages 205-243, May.
    6. repec:hal:journl:halshs-00113332 is not listed on IDEAS
    7. Jean-Marc Bonnisseau & Bertrand Crettez, 2007. "On the Characterization of Efficient Production Vectors," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(2), pages 213-223, May.
    8. J. M. Bonnisseau & A. Jamin, 2008. "Equilibria with Increasing Returns: Sufficient Conditions on Bounded Production Allocations," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(6), pages 1033-1068, December.
    9. M. Ali Khan, 2007. "Perfect Competition," PIDE-Working Papers 2007:15, Pakistan Institute of Development Economics.
    10. Murty, Sushama, 2010. "Externalities and fundamental nonconvexities: A reconciliation of approaches to general equilibrium externality modeling and implications for decentralization," Journal of Economic Theory, Elsevier, vol. 145(1), pages 331-353, January.
    11. Maria Carmela Ceparano & Federico Quartieri, 2020. "On Pareto Dominance in Decomposably Antichain-Convex Sets," Journal of Optimization Theory and Applications, Springer, vol. 186(1), pages 68-85, July.
    12. Jean-Marc Bonnisseau & Matías Fuentes, 2020. "Market Failures and Equilibria in Banach Lattices: New Tangent and Normal Cones," Journal of Optimization Theory and Applications, Springer, vol. 184(2), pages 338-367, February.
    13. Ceparano, Maria Carmela & Quartieri, Federico, 2019. "A second welfare theorem in a non-convex economy: The case of antichain-convexity," Journal of Mathematical Economics, Elsevier, vol. 81(C), pages 31-47.
    14. Paweł Dziewulski, 2011. "On Time-to-Build Economies with Multiple-Stage Investments," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 9, pages 23-49.
    15. Bonnisseau, Jean-Marc & Medecin, Jean-Philippe, 2001. "Existence of marginal pricing equilibria in economies with externalities and non-convexities," Journal of Mathematical Economics, Elsevier, vol. 36(4), pages 271-294, December.
    16. Bonnisseau Jean-Marc & Jamin Alexandrine, 2011. "The Survival Assumption in Intertemporal Economies," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 11(1), pages 1-18, June.
    17. Jean-Marc Bonnisseau & Matias Fuentes, 2022. "Increasing returns, externalities and equilibrium in Riesz spaces," Documents de travail du Centre d'Economie de la Sorbonne 22025, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    18. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.
    19. Kwan Koo Yun, 2004. "Efficient Pareto-improving Processes," Econometric Society 2004 Far Eastern Meetings 784, Econometric Society.
    20. Yun, Kwan Koo, 1995. "The Dubovickii-Miljutin Lemma and characterizations of optimal allocations in non-smooth economies," Journal of Mathematical Economics, Elsevier, vol. 24(5), pages 435-460.
    21. W D A Bryant, 2009. "General Equilibrium:Theory and Evidence," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6875, January.

    More about this item

    Keywords

    Increasing returns; Non-convex production sets; Marginal pricing rule; Marginal cost; General equilibrium; Existence of equilibria; C62; D50; D51;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:33:y:2007:i:3:p:579-589. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.