PARETO OPTIMALITY IN NON-CONVEX ECONOMIES

摘要: This article uses the concept of "cone interior displacements," which extends notion differentiability, to set up a characterization Pareto optima in non-convex economies. A general theorem asserting that optimum is PA equilibrium given and specifications are discussed. It finally argued usual formulation doctrine "marginal cost pricing"as for achieving optimal states decentralized economy has unsatisfactory logical basis, way defining minimum degree centralization inherent economies suggested. THE MAIN RESULTS economic theory allocation resources rest upon assumptions convexity: convexity production sets, preferences. The relevance these often doubtful; even if many consumer classical statements can be extended case nonconvex preferences (this idea, pointed out first by Farrell [13] Rothenberg [24], was developed framework economics with continuum agents as introduced Aumann [4]; see W. Hildenbrand [18 19]), indivisibilities arising large create non-convexities cannot overlooked. Furthermore, may arise externalities (see Baumol [5], Kolm [20], Starrett [25]), exchange information Radner [23]), or stock markets Dreze [10]). Even one must take risk producing less elegant results, relevant ignore non-convexities.