On effect of resource constraints on optimal distribution of commodities
Mikhail Sevodin, Vladimir Pevadchuk, Tatiana OSECHKINA
Available Online June 2017.
- https://doi.org/10.2991/ttiess-17.2017.101How to use a DOI?
- exchange economy, rationed equilibrium, constraints, preferences
- 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
- 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 -