Egbert Dierker, Roger Guesnerie, Wilhelm Neuefeind
We consider economies in which some of the firms are price takers whereas other firms are price setters. The latter firms consider the output levels for their own products as well as the prices of the inputs as given, maximize their cost, and set prices for their products according to some specific pricing rule. We give conditions under which decentralizing prices and output levels exist. This existence of equilibrium theorem covers a wide array of pricing rules, as for instance, marginal cost pricing, pricing a la Boiteux, and Aumann-Shapley pricing.
MLA
Dierker, Egbert, et al. “General Equilibrium when Some Firms Follow Special Pricing Rules.” Econometrica, vol. 53, .no 6, Econometric Society, 1985, pp. 1369-1394, https://www.jstor.org/stable/1913213
Chicago
Dierker, Egbert, Roger Guesnerie, and Wilhelm Neuefeind. “General Equilibrium when Some Firms Follow Special Pricing Rules.” Econometrica, 53, .no 6, (Econometric Society: 1985), 1369-1394. https://www.jstor.org/stable/1913213
APA
Dierker, E., Guesnerie, R., & Neuefeind, W. (1985). General Equilibrium when Some Firms Follow Special Pricing Rules. Econometrica, 53(6), 1369-1394. https://www.jstor.org/stable/1913213
We are deeply saddened by the passing of Kate Ho, the John L. Weinberg Professor of Economics and Business Policy at Princeton University and a Fellow of the Econometric Society. Kate was a brilliant IO economist and scholar whose impact on the profession will resonate for many years to come.
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