© 1996

General Equilibrium with Increasing Returns


Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 438)

Table of contents

  1. Front Matter
    Pages I-XIII
  2. The Basic Model

    1. Front Matter
      Pages 1-4
    2. Antonio Villar
      Pages 5-11
    3. Antonio Villar
      Pages 13-38
    4. Antonio Villar
      Pages 39-48
    5. Antonio Villar
      Pages 49-62
  3. Marginal Pricing and the Efficiency Problem

    1. Front Matter
      Pages 63-66
    2. Antonio Villar
      Pages 67-81
    3. Antonio Villar
      Pages 83-92
    4. Antonio Villar
      Pages 93-105
  4. Loss-Free Pricing Rules and Private Ownership Market Economies

    1. Front Matter
      Pages 107-109
    2. Antonio Villar
      Pages 111-120
    3. Antonio Villar
      Pages 121-133
    4. Antonio Villar
      Pages 135-150
  5. Back Matter
    Pages 151-166

About this book


This is a book on general equilibrium in which firms are allowed to exhibit increasing returns to scale (more precisely, in which the convexity of production sets is not assumed). As such, it provides a full fledged general equilibrium model and analyzes the chief questions concerning existence and optimality. Increasing returns is a topic which many economists find it to be simultaneously very imponant, very difficult and very discouraging. It is very important because it refers to a well established technological phenomenon which is essentially incompatible with the functioning of competitive markets. It is very difficult because the standard concepts and tools for the analysis fail (in particular, the supply mappings are not well defined). It is very discouraging because the available models do not seem to solve the basic questions: Normative models where nonconvex firms follow marginal pricing do not achieve efficient outcomes, and positive models cannot incorporate monopolistic competition as a way of defming the behavior of those firms with increasing returns to scale. I would like to think that this monograph will contribute to show that "the increasing returns question" is neither too difficult nor too discouraging. Concerning the difficulty, it will be shown that the analysis can be carried out with essentially the same tools as those applicable to the standard competitive model. As for the relevance of the results available, let me point out the following.


General Equlibrium Gleichgewichtstheorie Increasing Returns Mathematische Ökonomie Non-Convexities complexity consumer efficiency equilibrium general equilibrium pricing welfare zunehmende Grenzerträge Ökonom Ökonomie

Authors and affiliations

  1. 1.Department of EconomicsUniversity of AlicanteAlicanteSpain

Bibliographic information

  • Book Title General Equilibrium with Increasing Returns
  • Authors Antonio Villar
  • Series Title Lecture Notes in Economics and Mathematical Systems
  • DOI
  • Copyright Information Springer-Verlag Berlin Heidelberg 1996
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Softcover ISBN 978-3-540-61152-3
  • eBook ISBN 978-3-662-00457-9
  • Series ISSN 0075-8442
  • Edition Number 1
  • Number of Pages XIII, 166
  • Number of Illustrations 16 b/w illustrations, 0 illustrations in colour
  • Topics Economic Theory/Quantitative Economics/Mathematical Methods
  • Buy this book on publisher's site
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