Price normalization under imperfect competition |
| |
Authors: | Klaus Ritzberger |
| |
Affiliation: | (1) Vienna Graduate School of Finance and Institute for Advanced Studies, Stumpergasse 56, 1060 Vienna, Austria |
| |
Abstract: | In general equilibrium models of imperfect competition the equilibria depend on how prices are normalized. This note shows that a price normalization preserves convexity properties if and only if prices are measured in terms of a fixed commodity bundle. I am grateful to an anonymous referee for helpful comments, inspiring a simplification in the proof of the main result, and the argument in the Remark. |
| |
Keywords: | General equilibrium Imperfect competition Price normalization |
本文献已被 SpringerLink 等数据库收录! |