Existence of equilibria with a tight marginal pricing rule

Journal article: This paper deals with the existence of marginal pricing equilibria when it is defined by using a new and tighter normal cone introduced by B. Cornet and M.O. Czarnecki. The main interest of this new definition of the marginal pricing rule comes from the fact that it is more precise in the sense that the set of prices satisfying the condition is smaller than the one given by the Clarke's normal cone. The counterpart is that it is not convex valued, which leads to some mathematical difficulties in the existence proof. The result is obtained through an approximation argument under the same assumptions as in the previous existence results.

Author(s)

Jean-Marc Bonnisseau, Bernard Cornet

Journal
  • Journal of Mathematical Economics
Date of publication
  • 2008
Keywords JEL
C62 D50 D51
Pages
  • 613-624
Version
  • 1
Volume
  • 44