01.10.2009 – On Economic Efficiency Under Non-Convexity

1 octobre 2009

01 octobre 2009Lille
Share this:Tweet about this on TwitterShare on FacebookShare on LinkedInShare on Google+

Speaker: Walter Briec – University of Perpignan

Date and place: 01/10/2009
IÉSEG School of Management –
7 rue Solférino – 59000 LILLE
Lecture Room: E01 (ground floor)

IÉSEG Seminar jointly with LEM UMR8179

Co-Authors of the
underlying paper:
Jean-Paul Chavas, University of Wisconsin-Madison

Paper and slides: Download the paper – (PDF – 247 Ko)

Description:

  • This paper investigates economic efficiency under non-convexity. The analysis relies on a generalization of the separating hyperplane theorem under non-convexity. The concept of zero-maximality is used to characterize Pareto efficiency under non-convexity. We show the existence of a separating hypersurface that can be used to provide a dual characterization of efficient allocations. When the separating hypersurface is non-linear, this implies that non-linear pricing is an integral part of economic efficiency. Implications for the decentralization of economic decisions under non-convexity are discussed.
IÉSEG