On the satisfaction of peak demand in the certainty case

The concept of full-capacity flat-rate equilibrium is explored for a version of the Arrow-Debreu model with time-differentiated goods and production subject to a capacity constraint. The corresponding equilibrium allocations are shown to be inefficient in general. It is also shown that rationing peak demand is Pareto superior to non-rationing.

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Year of publication:	2008
Authors:	Balasko, Yves
Published in:	Journal of Mathematical Economics. - Elsevier, ISSN 0304-4068. - Vol. 44.2008, 7-8, p. 569-574
Publisher:	Elsevier

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005388287