On economic efficiency under non-convexity
AbstractThis paper investigates economic efficiency under non-convexity. The analysis relies on a generalization of the separating hyperplane theorem under non-convexity. The concept of zero-maximality is used to characterize Pareto efficiency under non-convexity. We show the existence of a separating hypersurface that can be used to provide a dual characterization of efficient allocations. When the separating hypersurface is non-linear, this implies that non-linear pricing is an integral part of economic efficiency. Implications for the decentralization of economic decisions under non-convexity are discussed. Copyright Springer-Verlag 2012
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Economic Theory.
Volume (Year): 50 (2012)
Issue (Month): 3 (August)
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00199/index.htm
Find related papers by JEL classification:
- C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- D6 - Microeconomics - - Welfare Economics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Armstrong, Mark, 1996. "Multiproduct Nonlinear Pricing," Econometrica, Econometric Society, vol. 64(1), pages 51-75, January.
- Bonnisseau, Jean-Marc & Cornet, Bernard, 1988.
"Valuation equilibrium and pareto optimum in non-convex economies,"
Journal of Mathematical Economics,
Elsevier, vol. 17(2-3), pages 293-308, April.
- BONNISSEAU, Jean-Marc & CORNET, Bernard, . "Valuation equilibrium and Pareto optimum in non-convex economies," CORE Discussion Papers RP -817, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bonnisseau, J.-M. & Cornet, B., 1986. "Valuation equilibrium and Pareto optimum in nonconvex economies," CORE Discussion Papers 1986036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
- Guesnerie, Roger, 1975. "Pareto Optimality in Non-Convex Economies," Econometrica, Econometric Society, vol. 43(1), pages 1-29, January.
- Luenberger, David G, 1996. "Welfare from a Benefit Viewpoint," Economic Theory, Springer, vol. 7(3), pages 445-62, April.
- Armstrong, Mark & Vickers, John, 2001. "Competitive Price Discrimination," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 579-605, Winter.
- David G. Luenberger, 1996. "Welfare from a benefit viewpoint (*)," Economic Theory, Springer, vol. 7(3), pages 445-462.
- Janusz A. Ordover & John C. Panzar, 1980. "On the Nonexistence of Pareto Superior Outlay Schedules," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 351-354, Spring.
- McAfee, R Preston & McMillan, John & Whinston, Michael D, 1989. "Multiproduct Monopoly, Commodity Bundling, and Correlation of Values," The Quarterly Journal of Economics, MIT Press, vol. 104(2), pages 371-83, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.