General equilibrium models of oligopolistic competition give rise to relative prices only without determining the price … maximize profits. This is due to the fact that changing the price normalization amounts to altering the objective functions of … the firms. Clearly, the objective of a firm must not be based on price normalization rules void of any economic content …

This note presents an analytical method to examine when, why, and how rules of price normalization have an impact on … fixed costs or increasing returns. The generic dependence of allocations on rules of price normalization implies alterations … competition, international trade, welfare economics, public economics, and macroeconomics revealing the generic impact of price …

assumptions about the velocity of money. Homothetic preferences generate Marshallian demands which are linear in own price …