Abstract
The existence of an equilibrium in an extended Walrasian economic model of exchange is confirmed constructively by an iterative scheme. In this scheme, truncated variational inequality problems are solved in which the agents’ budget constraints are relaxed by a penalty representation. Epi-convergence arguments are employed to show that, in the limit, a virtual equilibrium is obtained, if not actually a classical equilibrium. A number of technical hurdles are, in this way, surmounted.
Reserach supported by MI Nucleus Complex Engineering Systems.
Reserach supported by the U.S. National Science Foundation under grant DMS-104055.
Reserach supported by the U.S. National Science Foundation under grant DMS-0205699 and Office of Naval Research under grant MURI N00014-00-1-0637.
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Jofre, A., Rockafellar, R.T., Wets, R.J.B. (2005). A Variational Inequality Scheme for Determining an Economic Equilibrium of Classical or Extended Type. In: Giannessi, F., Maugeri, A. (eds) Variational Analysis and Applications. Nonconvex Optimization and Its Applications, vol 79. Springer, Boston, MA. https://doi.org/10.1007/0-387-24276-7_34
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DOI: https://doi.org/10.1007/0-387-24276-7_34
Publisher Name: Springer, Boston, MA
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