Variational Inequalities for Static Equilibrium Market. Lagrangean Function and Duality

Year
2001
Type(s)
Author(s)
P. Daniele
Source
Equilibrium Problems: Nonsmooth Optimization and Variational Inequality Models, Kluwer Academic Publishers, F. Giannessi – A. Maugeri – P. Pardalos Eds., 2001, 43-58.
Url
http://goo.gl/fgtuej
BibTeX
BibTeX

The spatially distributed economic market is considered in the case of excesses of the supplies and of the demands. The equilibrium conditions that describe this “disequilibrium” model are expressed in terms of Variational Inequalities for which the existence of solutions is provided by recent results. Mainly, the Lagrangean theory for the model is studied and as an interesting consequence, we obtain that Lagrangean variables provide the excesses of supply and of demand. Hence, the Lagrangean theory alloows us to obtain the most important data of the economic problem, exactly the excesses. Also a computational procedure is presented based on the direct method (see [6], [7]) that in this case reveals itself to be effectrive.

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