Increasing returns, externalities and equilibrium in Riesz spaces

URL des Documents de travail : https://centredeconomiesorbonne.cnrs.fr/publications/Documents de travail du Centre d'Economie de la Sorbonne 2022.25 - ISSN : 1955-611XThis paper studies the appropriate pricing rule and its associated equilibrium concept when there are market imperfections in a Riesz space setting. We extend the notion of marginal pricing equilibria to situations with non convex production sets and external factors in an abstract vector lattice whose topological dual is a sublattice of its order dual. Our main result guarantees that a non-competitive equilibrium exists and it is related with first order condition for profit maximization at the time that it encompasses a wide range of economic situations since previous results in the literature become particular cases of it. Furthermore, we developed a new properness assumption that takes into account the non convexity of the production correspondences together with the presence of externalities which in some sense is a weakening of some known conditions in competitive economies