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QUASI-VARIATIONAL APPROACH OF A COMPETITIVE ECONOMIC EQUILIBRIUM PROBLEM WITH UTILITY FUNCTION: EXISTENCE OF EQUILIBRIUM

Department of Mathematics, University of Messina, Contrada Papardo, Salita Sperone, 31, 98166 Sant'Agata, Messina, Italy

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MONICA MILASI

Department of Mathematics, University of Messina, Contrada Papardo, Salita Sperone, 31, 98166 Sant'Agata, Messina, Italy

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CARMELA VITANZA

Department of Mathematics, University of Messina, Contrada Papardo, Salita Sperone, 31, 98166 Sant'Agata, Messina, Italy

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https://doi.org/10.1142/S0218202508002711Cited by:21 (Source: Crossref)

Abstract

A Walrasian pure exchange economy with utility functions, a particular case of a general economic equilibrium problem, is considered in this paper. We assume that each agent is endowed with goods and maximizes his utility function, under his budget constraints. We are able to characterize the Walrasian equilibria as solution of an associated quasi-variational inequality. This approach allows us to obtain an existence result of equilibrium solutions. As an application, we provide the explicit equilibrium in the case of two agents and two goods.

Keywords:

AMSC: 22E46, 53C35, 57S20

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