The Density Form of Equilibrium Prices in Continuous Time and Boiteuxs Solution to the Shifting-Peak Problem- (Now published as Boiteuxs solution to the shifting-peak problem and the equilibrium price density in continuous time, in Economic Theory, vol. 20 (2002), pp.503-537.)
Bewley's condition on production sets, imposed to ensure the existence of an equilibrium price density when L? is the commodity space, is weakened to allow applications to continuous-time problems, and especially to peak-load pricing when the users' utility and production function are Mackey continuous. A general form of the production sets with the required property is identified, and examples are given of technologies which meet the weakened but not the original condition: these include industrial use and storage of cyclically priced goods. General equilibrium results are supplemented by those for prices supporting individual consumer or producer optima. Also, to make clear the restriction implicit in Mackey continuity, we interpret it as interruptibility of demand; and we point out that, without this assumption, the equilibrium can feature pointed peaks with singular, instantaneous capacity charges.
|Date of creation:||Oct 1999|
|Date of revision:|
|Contact details of provider:|| Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp|
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.:
- Bewley, Truman F., 1972. "Existence of equilibria in economies with infinitely many commodities," Journal of Economic Theory, Elsevier, vol. 4(3), pages 514-540, June.
- Horsley, Anthony & Wrobel, Andrzej J, 1991.
"The Closedness of the Free-Disposal Hull of a Production Set,"
Springer, vol. 1(4), pages 386-91, October.
- Horsley, A. & Wrobel, A.J., 1990. "The Closedness of the Free-Disposal Hull of a Production Set," Discussion Paper 1990-13, Tilburg University, Center for Economic Research.
- Horsley, A. & Wrobel, A., 1990. "The Closedness Of The Free-Disposal Hull Of A Production Set," Papers 9013, Tilburg - Center for Economic Research.
- Back, Kerry, 1988. "Structure of consumption sets and existence of equilibria in infinite-dimensional spaces," Journal of Mathematical Economics, Elsevier, vol. 17(1), pages 89-99, February.
- Horsley, A. & Wrobel, A., 1990.
"The Existence Of An Equilibrium Density For Marginal Cost Prices, And The Solution To The Shifting-Peak Problem,"
9012, Tilburg - Center for Economic Research.
- Horsley, A. & Wrobel, A.J., 1990. "The Existence of an Equilibrium Density for Marginal Cost Prices, and the Solution to the Shifting-Peak Problem," Discussion Paper 1990-12, Tilburg University, Center for Economic Research.
- Anthony Horsley & Andrew J. Wrobel & Timothy Van Zandt, 1998.
"Berge's maximum theorem with two topologies on the action set,"
LSE Research Online Documents on Economics
19358, London School of Economics and Political Science, LSE Library.
- Horsley, Anthony & Wrobel, A. J. & Van Zandt, Timothy, 1998. "Berge's maximum theorem with two topologies on the action set," Economics Letters, Elsevier, vol. 61(3), pages 285-291, December.
- repec:cep:stitep:/1992/246 is not listed on IDEAS
- Richard, Scott F., 1989. "A new approach to production equilibria in vector lattices," Journal of Mathematical Economics, Elsevier, vol. 18(1), pages 41-56, February.
- repec:cep:stitep:/1996/300 is not listed on IDEAS
- Gerard Debreu, 1961. "New Concepts and Techniques for Equilibrium Analysis," Cowles Foundation Discussion Papers 129, Cowles Foundation for Research in Economics, Yale University.
- repec:cep:stitep:/1996/301 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:cep:stitep:371. 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: ()
If references are entirely missing, you can add them using this form.