Econometrica: Sep 1977, Volume 45, Issue 6
A Quantity-Quantity Algorithm for Planning under Increasing Returns to Scale
https://doi.org/0012-9682(197709)45:6<1339:AQAFPU>2.0.CO;2-K
p.
1339-1348
Jacques Cremer
This paper describes a decentralized planning procedure which converges to a global optimum--as seen by a central planning board--whether or not the production possibility sets of the firms are convex. All information is exchanged in the form of quantities: the planning board proposes quotas and the firms respond with feasible production programs.Log In To View Full Content