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Existence of marginal pricing equilibria in economies with externalities and non-convexities

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  • Bonnisseau, Jean-Marc
  • Medecin, Jean-Philippe

Abstract

We consider a general equilibrium model with a production sector. The consumption sets, the preferences of the consumers and the production possibilities are represented by set-valued mappings to take into account the possibility of external effects. There are no convexity assumptions on the correspondences of production. We impose to the firms to follow the marginal cost tarification which is defined with the Clarke's normal cone. We prove the existence of general equilibria under assumptions which allows us to combine works on economies with externalities and convex production sectors, and the ones on economies with marginal cost tarification and without externalities.
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Suggested Citation

  • 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.
    • Handle: RePEc:eee:mateco:v:36:y:2001:i:4:p:271-294
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    Cited by:

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    2. Elena L. Mercato & Vincenzo Platino, 2017. "Private ownership economies with externalities and existence of competitive equilibria: a differentiable approach," Journal of Economics, Springer, vol. 121(1), pages 75-98, May.
    3. Jean-Marc Bonnisseau & Antoine Mandel & Yann Toma & François-Guy Trébulle, 2015. "Penser le changement climatique," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01496167, HAL.
    4. Antoine Mandel, 2009. "Changes in the firms behavior after the opening of markets of allowances," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(1), pages 1-25, July.
    5. Elena L. Mercato & Vincenzo Platino, 2017. "On the regularity of smooth production economies with externalities: competitive equilibrium à la Nash," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(1), pages 287-307, January.
    6. Vincenzo Platino, 2021. "Externalities in private ownership production economies with possibility functions. An existence result," Metroeconomica, Wiley Blackwell, vol. 72(3), pages 509-525, July.
    7. Jean-Marc Bonnisseau & Matías Fuentes, 2018. "Market failures and equilibria in Banach lattices," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01960874, HAL.
    8. Mandel, Antoine, 2008. "An index formula for production economies with externalities," Journal of Mathematical Economics, Elsevier, vol. 44(12), pages 1385-1397, December.
    9. 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.
    10. Holmberg, Pär & Tangerås, Thomas & Ahlqvist, Victor, 2018. "Central- versus Self-Dispatch in Electricity Markets," Working Paper Series 1257, Research Institute of Industrial Economics, revised 27 Mar 2019.
    11. 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.
    12. Fuentes, Matías N., 2011. "Existence of equilibria in economies with externalities and non-convexities in an infinite-dimensional commodity space," Journal of Mathematical Economics, Elsevier, vol. 47(6), pages 768-776.
    13. Jean-Marc Bonnisseau & Matías Fuentes, 2022. "Increasing returns, externalities and equilibrium in Riesz spaces," Working Papers halshs-03908326, HAL.

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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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