Equilibrium and Efficiency in Production Economies

This book deals with the analysis of production economies in which firms may exhibit increasing returns to scale, or other forms of non-convexities. The study focuses on the existence and efficiency of equilibrium allocations, and the comparison with the standard competitive equilibrium model. A number of alternative pricing rules and equilibrium concepts are considered (marginal pricing, constrained profit maximization, mark-up pricing, valuation equilibria, non-linear input-output models, etc.). TOC:Preliminaries.- Consumers.- Production and Supply.- Competitive Equilibrium.- Equilibrium with Non-Convex Firms.- Marginal Pricing.- Increasing Returns and Monopolies.- Loss-Free Pricing Rules.- Competition and Increasing Returns.- Non-Convexities as Public Goods.- Input-Output Analysis.- The Limits of the Economy.