Economic equilibrium through variational inequalities

Magdalena Nockowska-Rosiak
2009 Applicationes Mathematicae  
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
more » ... el are allowed not to be strictly concave and they can reach their maximum in the commodity space.
doi:10.4064/am36-1-4 fatcat:derjn7jbmrfvjnvbf7femkmwyy