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Abstract for:

A Practical Short-run Approach to Market Equilibrium

Anthony  Horsley,  Andrew J  Wrobel,  April 2005
Paper No' TE/2005/488: | Full paper (pdf)
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Keywords: general equilibrium; fixed-input valuation, nondifferentiable joint costs, Wong-Viner Envelope Theorem, peak-load pricing

JEL Classification: D24; D41; D58

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: Theoretical Economics
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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.