A practical short-run approach to market equilibrium

Horsley, Anthony; and Wrobel, Andrew J. (2005) A practical short-run approach to market equilibrium. [Working paper]

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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	Working paper
Keywords	general equilibrium,fixed-input valuation,nondifferentiable joint costs,Wong-Viner Envelope Theorem,peak-load pricing.
Departments	Economics STICERD
Date Deposited	11 Jul 2008 13:11
URI	https://researchonline.lse.ac.uk/id/eprint/19313