Cost minimization of nonconvex firms under prices in normal cones.
Clarke's normal cone has been frequently used to formulate the marginal cost pricing rule for nonconvex firms. I provide examples where a firm with convex iso-output sets is not minimizing its cost at a price vector in the normal cone. For a firm to be cost minimizing under any price in the normal...
| Publicado en: | International Economic Review Vol. 35; pp. 1019 - 1029 |
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| Formato: | Artículo |
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Wiley-Blackwell
November 1994
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=512490269&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 512490269 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00206598 IER jtl: International Economic Review issn: 00206598 maglogo: N pubinfo: dt: November 1994 vid: 35 pid: 480 pub: Wiley-Blackwell artinfo: ui: 512490269 10.2307/2527009 ppf: 1019 ppct: 10 formats: tig: atl: Cost minimization of nonconvex firms under prices in normal cones. aug: au: Ishimoto, Osamu su: Mathematical models Marginal pricing Production functions (Economic theory) Resource allocation -- Mathematical models Welfare economics sug: subj: Mathematical models Marginal pricing Production functions (Economic theory) Resource allocation -- Mathematical models Welfare economics ab: Clarke's normal cone has been frequently used to formulate the marginal cost pricing rule for nonconvex firms. I provide examples where a firm with convex iso-output sets is not minimizing its cost at a price vector in the normal cone. For a firm to be cost minimizing under any price in the normal cone, lower hemicontinuity of the iso-output correspondence is sufficient. I also provide an extension of the second welfare theorem, with a price vector in the normal cone of each firm and cost minimization of firms. Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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