Our contribution offers a methodological exhibition of general equilibrium models with price and quantity signals. By the application of optimal value functions the household as well as the firm behaviour is modelled. The concepts of virtual prices and virtual quantities allow us to express...

Collective consumption decisions taken by the members of a household may prove inefficient. The impact on market performance depends on whether household inefficiencies are caused by inefficient net trades with the market or by inefficient distribution of resources within households. Inefficient...