A REMARK ON CLARKE'S NORMAL CONE AND THE MARGINAL COST PRICING RULE

Elyès Jouini (1)

1 CEREMADE - CEntre de REcherches en MAthématiques de la DEcision

This paper constructs a closed set Y in R' such that for all y in the boundary of Y Clarke's normal cone to Y at y is equal to R'+. If Y is the production set of a tirm, then the marginal cost pricing rule imposes no restriction. The existence of Y is shown to be equivalent to the existence of a Lipschitzian function f from Rt-1 to R such that the generalized gradient of / is everywhere equal to the convex hull of 0 and the simplex of Rt-1.

Mots clés: pricing rule; marginal cost

Domaines: Economies et finances

Elyès Jouini. A REMARK ON CLARKE'S NORMAL CONE AND THE MARGINAL COST PRICING RULE. Journal of Mathematical Economics, 1989, 18, pp.95-101. ⟨halshs-00167132⟩