On the existence of equilibria in economies with increasing returns

Abstract

We provide a result on the existence of equilibria in economies with non-convex production sets. The principal assumption is a boundary condition and an income hypothesis on a subset of the production sets. As corollaries of our main results, we obtain the results of Beato and Mas-Colell (1985), Brown et al. (1986) and the classical result on the existence of Walrasian equilibria in convex economies. The result of Bonnisseau and Cornet (1988) is similar, but not directly comparable, to ours.