In this paper we establish an index formula for a marginal pricing production economy and we prove the uniqueness of the equilibrium under a monotonicity assumption on the excess demand function and the local second order sufficient conditions for profit maximization. Our result generalizes...

In this paper we study some foundational issues in the theory of asset pricing with market frictions. We model market frictions by letting the set of marketed contingent claims (the opportunity set) be a convex set, and the pricing rule at which these claims are available be convex. This is the...