The marginal pricing rule revisited

Jean-Marc Bonnisseau (1) , Bernard Cornet (2, 1) , Marc-Olivier Czarnecki (3)

1 CES - Centre d'économie de la Sorbonne
2 Department of economics, University of Kansas
3 I3M - Institut de Mathématiques et de Modélisation de Montpellier

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.

Mots clés: General equilibrium; Marginal cost; Marginal pricing rule; Non-convex production sets; Existence of equilibria; Increasing returns

Domaines: Economies et finances

Jean-Marc Bonnisseau, Bernard Cornet, Marc-Olivier Czarnecki. The marginal pricing rule revisited. 2005. ⟨halshs-00794924⟩