Proceedings of the International Conference on Trends of Technologies and Innovations in Economic and Social Studies 2017

On effect of resource constraints on optimal distribution of commodities

Authors
Mikhail Sevodin, Vladimir Pevadchuk, Tatiana OSECHKINA
Corresponding Author
Mikhail Sevodin
Available Online June 2017.
DOI
https://doi.org/10.2991/ttiess-17.2017.101How to use a DOI?
Keywords
exchange economy, rationed equilibrium, constraints, preferences
Abstract
The article investigates a closed exchange economy model. It considers situations where constraints are imposed on the volumes of purchase and sale by economic agents. At the same time, it allows a certain range for price variability. Such approaches to studying economic processes are motivated by production, economical and political reasons, forming the so-called rationing schemes. Typically, and in this work in particular, rationing schemes, applied under natural conditions, allow allocating a subset of resources and guaranteeing a commodity distribution that is not "too bad." In this article, both resource and price constraints are cone-shaped, which allows applying them to growing economies. The authors establish the existence of a rationed equilibrium under these circumstances. Unlike conventional rationing schemes, the authors also consider situations where certain consumer preferences are non-convex. The preference convexity condition is replaced with a weaker condition of convexity within the directional cone. At the same time, the proof of existence of a rationed equilibrium does not impose any significant additional constraints on the consumer
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Proceedings
Part of series
Advances in Economics, Business and Management Research
Publication Date
June 2017
ISBN
978-94-6252-408-8
ISSN
2352-5428
DOI
https://doi.org/10.2991/ttiess-17.2017.101How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Mikhail Sevodin
AU  - Vladimir Pevadchuk
AU  - Tatiana OSECHKINA
PY  - 2017/06
DA  - 2017/06
TI  - On effect of resource constraints on optimal distribution of commodities
PB  - Atlantis Press
SP  - 619
EP  - 624
SN  - 2352-5428
UR  - https://doi.org/10.2991/ttiess-17.2017.101
DO  - https://doi.org/10.2991/ttiess-17.2017.101
ID  - Sevodin2017/06
ER  -