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The purpose of this paper is to present an alternative proof of the existence of the Walrasian equilibrium for the Arrow-Debreu-McKenzie model by the variational inequality technique. Moreover, examples of the generalized Arrow-Debreu-McKenzie model are given in which the price vector can reach the boundary of the orthant allowing a commodity to be of price zero at equilibrium. In such a case its supply exceeds demand. It is worth mentioning that utility functions in this model are allowed not to be strictly concave and they can reach their maximum in the commodity space.
@article{MagdalenaNockowska2009, abstract = {The purpose of this paper is to present an alternative proof of the existence of the Walrasian equilibrium for the Arrow-Debreu-McKenzie model by the variational inequality technique. Moreover, examples of the generalized Arrow-Debreu-McKenzie model are given in which the price vector can reach the boundary of the orthant allowing a commodity to be of price zero at equilibrium. In such a case its supply exceeds demand. It is worth mentioning that utility functions in this model are allowed not to be strictly concave and they can reach their maximum in the commodity space.}, author = {Magdalena Nockowska-Rosiak}, journal = {Applicationes Mathematicae}, keywords = {optimization problem; Walrasian equilibrium; variational inequalities}, language = {eng}, number = {1}, pages = {43-58}, title = {Economic equilibrium through variational inequalities}, url = {http://eudml.org/doc/279901}, volume = {36}, year = {2009}, }
TY - JOUR AU - Magdalena Nockowska-Rosiak TI - Economic equilibrium through variational inequalities JO - Applicationes Mathematicae PY - 2009 VL - 36 IS - 1 SP - 43 EP - 58 AB - The purpose of this paper is to present an alternative proof of the existence of the Walrasian equilibrium for the Arrow-Debreu-McKenzie model by the variational inequality technique. Moreover, examples of the generalized Arrow-Debreu-McKenzie model are given in which the price vector can reach the boundary of the orthant allowing a commodity to be of price zero at equilibrium. In such a case its supply exceeds demand. It is worth mentioning that utility functions in this model are allowed not to be strictly concave and they can reach their maximum in the commodity space. LA - eng KW - optimization problem; Walrasian equilibrium; variational inequalities UR - http://eudml.org/doc/279901 ER -