Existence of Drèze equilibrium under set-up costs

A fixed number of firms operate under technologies which are described as the union of the origin and a compact convex set disjoint from the origin: increasing returns thus prevail over some range. It is shown that a zero trade parametric price, quantity-constrained (Drèze) equilibrium exists at all prices and non-trivial equilibrium will exist at some prices if (in particular) the consumer side of the economy is replicated sufficiently. Following recent work by Weddepohl the objective is to provide a logically consistent and useful tool for the analysis of increasing return economies.