On economic efficiency under non-convexity
This 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
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 50 (2012)
Issue (Month): 3 (August)
|Contact details of provider:|| Web page: http://saet.uiowa.edu/|
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/economic+theory/journal/199/PS2|
References listed on IDEAS
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.
- Jean-Marc Bonnisseau & Bernard Cornet, 1988.
"Valuation equilibrium and pareto optimum in non-convex economies,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- 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, 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).
- 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).
- Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
- 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.
- R. Preston McAfee & John McMillan & Michael D. Whinston, 1989. "Multiproduct Monopoly, Commodity Bundling, and Correlation of Values," The Quarterly Journal of Economics, Oxford University Press, vol. 104(2), pages 371-383.
- Guesnerie, Roger, 1975. "Pareto Optimality in Non-Convex Economies," Econometrica, Econometric Society, vol. 43(1), pages 1-29, January.
- David G. Luenberger, 1996. "Welfare from a benefit viewpoint (*)," Economic Theory, Society for the Advancement of Economic Theory (SAET), vol. 7(3), pages 445-462.
- Armstrong, Mark & Vickers, John, 2001. "Competitive Price Discrimination," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 579-605, Winter.
- Luenberger, David G, 1996. "Welfare from a Benefit Viewpoint," Economic Theory, Society for the Advancement of Economic Theory (SAET), vol. 7(3), pages 445-62, April.
When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:50:y:2012:i:3:p:671-701. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.