Variational Inequality Type Formulations of General Market Equilibrium\n Problems with Local Information

2020/06/01 by I. V. Konnov, Konnov, Igor
Computer Science · #49J40 #65K10 #91B50 #91B55 #FOS: Economics and business #FOS: Mathematics #Optimization and Control (math.OC) #Optimization and Variational Analysis #Theoretical Economics (econ.TH)

paper · pdf · doi:10.48550/arxiv.2006.01178

openalex publication_date 2020/06/01 · openalex created_date 2022/07/26 · openalex updated_date 2026/07/28

Abstract

We suggest a new approach to creation of general market equilibrium models\ninvolving economic agents with local and partial knowledge about the system and\nunder different restrictions. The market equilibrium problem is then formulated\nas a quasi-variational inequality that enables us to establish existence\nresults for the model in different settings. We also describe dynamic\nprocesses, which fall into information exchange schemes of the proposed market\nmodel. In particular, we propose an iterative solution method for\nquasi-variational inequalities, which is based on evaluations of the proper\nmarket information only in a neighborhood of the current market state without\nknowledge of the whole feasible set and prove its convergence.\n

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