On the efficiency of market equilibrium in production economies

Authors
Villar, A
Citation
A. Villar, On the efficiency of market equilibrium in production economies, J GLOB OPT, 20(3-4), 2001, pp. 375-389
Citations number
20
Categorie Soggetti
Engineering Mathematics
Journal title
JOURNAL OF GLOBAL OPTIMIZATION
ISSN journal
09255001 → ACNP
Volume
20
Issue
3-4
Year of publication
2001
Pages
375 - 389
Database
ISI
SICI code
0925-5001(200108)20:3-4<375:OTEOME>2.0.ZU;2-9
Abstract
This paper introduces the notion of Market Equilibrium With Active Consumer s (MEWAC), in order to characterize the efficiency of market outcomes in pr oduction economies. We show that, no matter the behaviour followed by the f irms, a market equilibrium is efficient if it is a MEWAC. And also that eve ry efficient allocation can be decentralized as a MEWAC in which firms foll ow the marginal pricing rule.