Abstract
The presence of increasing returns to scale is in most cases incompatible with the competitive behaviour of firms (i.e., profit maximization at given prices). Imperfect competition arises then as a natural framework to analyze market economies with increasing returns: the behaviour of individual firms may well have an impact on prices. Unfortunately, such an analysis is still pending in the context of a general equilibrium model of this type: the difficulties seem extraordinary even in the convex case.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1996 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Villar, A. (1996). Constrained Profit Maximization. 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_9
Download citation
DOI: https://doi.org/10.1007/978-3-662-00457-9_9
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-61152-3
Online ISBN: 978-3-662-00457-9
eBook Packages: Springer Book Archive