Abstract
The purpose of this paper is to prove the existence of a marginal pricing economic equilibrium in presence of increasing returns and externalities in a commodity space general enough as to encompass the vast majority of economic situations. This extends the existing literature on competitive equilibria in vector lattices by incorporating market failures, and it also generalises several non-competitive existence results to a larger class of commodity spaces. The key features are a suitable definition for the marginal pricing rule and an adaptation of the properness condition.
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Acknowledgements
This paper has been supported by the Agence nationale de la recherche (France) through the Investissements d’Avenir program (ANR-17-EURE-01). Matías Fuentes acknowledges financial support from Programas de I+D en CCSS y Humanidades 2015 (MAD-ECO-POL-CM), Comunidad de Madrid (Spain), Project 2019/HUM-5891.
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Bonnisseau, JM., Fuentes, M. Marginal pricing equilibrium with externalities in Riesz spaces. Econ Theory 78, 1–27 (2024). https://doi.org/10.1007/s00199-023-01524-x
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DOI: https://doi.org/10.1007/s00199-023-01524-x
Keywords
- Riesz space
- Marginal pricing rule
- Non-competitive equilibrium
- \(\sigma \)-Locally \(\tau \)-Uniform properness or Properness condition