On effect of resource constraints on optimal distribution of commodities

DOI

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

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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
BT  - Proceedings of the International Conference on Trends of Technologies and Innovations in Economic and Social Studies 2017
PB  - Atlantis Press
SP  - 619
EP  - 624
SN  - 2352-5428
UR  - https://doi.org/10.2991/ttiess-17.2017.101
DO  - 10.2991/ttiess-17.2017.101
ID  - Sevodin2017/06
ER  -