Jm. Bonnisseau et M. Meddeb, Existence of equilibria in economies with increasing returns and infinitely many commodities, J MATH ECON, 31(3), 1999, pp. 287-307
In this paper, we prove the existence of equilibria in a model with infinit
ely many commodities and where production sets exhibit increasing returns t
o scale or more general types of non-convexities. We distinguish two cases.
In the first, producers follow loss free pricing rules like the average co
st or the profit maximizing pricing rule. The second case is devoted to bou
nded loss pricing rules. In each case, we give an existence result under as
sumptions which extend those considered in the finite dimensional case. In
particular, they are satisfied by a firm with a convex production set which
maximizes its profits. We also give a new sufficient condition to have an
economically meaningful equilibrium price. (C) 1999 Elsevier Science S.A. A
ll rights reserved.