On Market Equilibrium Analysis
14 Pages Posted: 31 Mar 2020
Date Written: May 1997
In this paper we develop the implications of competitive market equilibrium for production and household behavior when some prices are endogenously determined. The properties of market equilibrium functions are explored, including the effects of pricing policy. A Slutsky‐type equation relating compensated and uncompensated market equilibrium functions is derived. Implications for multimarket welfare analysis are presented, focusing on the effects of pricing policy and technical change.
Keywords: market equilibrium, pricing policy, technical change, welfare, D510
Suggested Citation: Suggested Citation