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We provide an elementary proof of the existence of equilibrium in a general equilibrium model allowing for non-convex production sets. It is shown that when firms follow upper hemicontinuous and convex-valued pricing rules with bounded losses, a price vector and an allocation exist, such that...
Persistent link: https://www.econbiz.de/10005147369
The purpose of this paper is to analyze the solvability of linear joint-production models (that is the existence of nonnegative solutions for all admissible values of the relevant parameters). A characterization result is provided.
Persistent link: https://www.econbiz.de/10005155413