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Robustly Efficient Equilibria in Non-Convex Economies

Chichilnisky, Graciela; Heal, Geoffrey M.

An economy has a robustly efficient marginal cost pricing equilibrium (mcpe) if it has an mcpe that is Pareto efficient and if this property is preserved under small variations in preferences endowments and technologies. We consider economies in which there is a finite number of equilibria, each of which varies continuously with preferences and endowments. We prove that there exist no robustly efficient marginal cost pricing equilibria.



More About This Work

Academic Units
Department of Economics, Columbia University
Department of Economics Discussion Papers, 641
Published Here
February 17, 2011


May 1992.

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