Abstract
The marginal pricing rule has deserved special attention, because it satisfies the necessary conditions for optimality, and coincides with profit maximization when production sets are convex. Hence it describes competitive behaviour in the convex case, and defines a specific regulation policy when there are increasing returns to scale (even though its efficiency properties are far from satisfactory).
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© 1996 Springer-Verlag Berlin Heidelberg
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Villar, A. (1996). Two-Part Marginal Pricing. In: General Equilibrium with Increasing Returns. Lecture Notes in Economics and Mathematical Systems, vol 438. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-00457-9_6
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DOI: https://doi.org/10.1007/978-3-662-00457-9_6
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-61152-3
Online ISBN: 978-3-662-00457-9
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