ABSTRACT
The theory of decentralized decision making for a static one-period model has been extensively developed. For the case of a convex technology and no externalities Debreu has surveyed and summarized the field. 1 Pigou is historically credited with raising the difficulties associated with the case of externalities, and various solutions and analyses have appeared subsequently. Nonconvexity of the technology raises seemingly insurmountable problems and, unfortunately, for an economic allocative problem nonconvexity is realistic to expect.
