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The marginal pricing rule revisited
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The marginal pricing rule revisited

Jean-Marc Bonnisseau, Bernard Cornet and Marc-Olivier Czarnecki
Cahiers de la Maison des Sciences Economiques
11/2005

Abstract

General equilibrium Marginal cost Marginal pricing rule Non-convex production sets Existence of equilibria Increasing returns C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling/C.C6.C62 - Existence and Stability Conditions of Equilibrium D - Microeconomics/D.D5 - General Equilibrium and Disequilibrium/D.D5.D50 - General D - Microeconomics/D.D5 - General Equilibrium and Disequilibrium/D.D5.D51 - Exchange and Production Economies
The purpose of the paper is to introduce a tighter definition for the marginal (cost) pricing rule. By means of an example, we illustrate the improvements that one gets with the new definition with respect to the former one using Clarke's normal cone, and we discuss its consequences in terms of the existence of equilibria.
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