Market equilibrium with nonconvex technologies

Resumen

An economy with l commodities, m consumers and n firms is considered. Consumers are modelled in a standard way. It is assumed that the jth firm has a closed and comprehensive production set, Y with O E Y. The equilibrium of firms appears associated to the notion of a pricing rule (a mapping applying the boundary of a firm's production set on the price space, whose graph describes the pairs prices-production which a firm finds "acceptable"). We show that when firms follow loss-free and upper hemicontinuous, convex-valued pricing rules, a price vector and an allocation exist, such that: a) Consumers maximize their preferences subject to their budget constraints; b) Every firm is in equilibrium; and c) All markets clear.