EXISTENCE OF EQUILIBRIA IN THE PRESENCE OF INCREASING RETURNS - A SYNTHESIS

In the literature, there are two theories dealing with the existence of equilibria in economies with non-convex production sets. In the first, the producers follow the marginal pricing rule and in the second, they follow general pricing rules with bounded loss. The purpose of this paper is to propose a synthesis of the two approaches in the sense that one deduces the existence of a marginal pricing equilibrium from the existence result for bounded loss pricing rules.