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Market equilibria and money
- Source :
- Fixed Point Theory and Algorithms for Sciences and Engineering, Vol 2021, Iss 1, Pp 1-18 (2021), Fixed Point Theory and Applications
- Publication Year :
- 2021
- Publisher :
- SpringerOpen, 2021.
-
Abstract
- By the first welfare theorem, competitivemarket equilibriabelong to thecoreand hence arePareto optimal. Lettingmoneybe a commodity, this paper turns these two inclusions around. More precisely, by generalizing the second welfare theorem we show that the said solutions may coincide as a commonfixed pointfor one and the same system.Mathematical arguments invoke conjugation, convolution, and generalized gradients. Convexity is merely needed via subdifferentiablity of aggregate “cost”, and at one point only.Economic arguments hinge on idealized market mechanisms. Construed as algorithms, each stops, and a steady state prevails if and only if price-taking markets clearandvalue added is nil.
- Subjects :
- Computer Science::Computer Science and Game Theory
T57-57.97
QA299.6-433
Applied mathematics. Quantitative methods
Conjugation
Generalized gradients
Fixed point
Competitive equilibrium
Discount points
Convexity
Convolution
Core (game theory)
If and only if
Value (economics)
Economics
Perfect competition
Mathematical economics
Commodity (Marxism)
Analysis
Subjects
Details
- Language :
- English
- ISSN :
- 27305422
- Volume :
- 2021
- Issue :
- 1
- Database :
- OpenAIRE
- Journal :
- Fixed Point Theory and Algorithms for Sciences and Engineering
- Accession number :
- edsair.doi.dedup.....0fdc9f150fafa87b9a48dbfd4ba88540