A practical short-run approach to market equilibrium

Horsley, Anthony and Wrobel, Andrew J. (2005) A practical short-run approach to market equilibrium. TE, 488. Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science, London, UK.

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Abstract

The “short-run approach” calculates long-run producer optima and general equilibria by building on short-run solutions to the producer’s profit maximization problem and on profit-based valuation of the fixed inputs. We outline this method and illustrate it on an example of peak-load pricing.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://sticerd.lse.ac.uk
Additional Information:	© 2005 the authors
Uncontrolled Keywords:	general equilibrium, fixed-input valuation, nondifferentiable joint costs, Wong-Viner Envelope Theorem, peak-load pricing.
Library of Congress subject classification:	H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System:	D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity D - Microeconomics > D4 - Market Structure and Pricing > D41 - Perfect Competition
Sets:	Collections > Economists Online Departments > Economics Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) Research centres and groups > Computational, Discrete and Applicable Mathematics@LSE (CDAM)
Rights:	http://www.lse.ac.uk/library/rights/LSERO.htm
Identification Number:	488
URL:	http://eprints.lse.ac.uk/19313/

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