Implementation of marginal cost pricing equilibrium allocations with transfers in economies with increasing returns to scale Academic Article uri icon

abstract

  • This paper considers implementation of marginal cost pricing equilibrium allocations with transfers for production economies with increasing returns to scale. We present a mechanism whose Nash equilibrium allocations coincide with the set of marginal cost pricing equilibrium allocations with transfers that characterizes Pareto efficient allocations for economies with non-convex production technologies. We allow production sets and preferences to be unknown to the planner. The mechanism has some nice properties such as feasibility, continuity, and finite-dimension of message space. Furthermore, it works not only for three or more agents, but also for two-agent economies. 2009 Springer-Verlag.

published proceedings

  • Review of Economic Design

author list (cited authors)

  • Tian, G.

citation count

  • 0

complete list of authors

  • Tian, Guoqiang

publication date

  • March 2010