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Variational Inequalities for Static Equilibrium Market. Lagrangean Function and Duality

  • Patrizia Daniele
Chapter
Part of the Nonconvex Optimization and Its Applications book series (NOIA, volume 58)

Abstract

The spatially distributed economic market is considered in the case of excess of the supplies and of the demands. The equilibrium conditions that describe this “disequilibrium” model are expressed in terms of Variational Inequalities for which the existence of solutions is provided by recent existence results. Mainly, the Lagrangean theory for the model is studied and as an interesting consequence, we obtain that Lagrangean variables provide the excesses of supply and of demand. Hence, the Lagrangean theory allows us to obtain the most important data of the economic problem, exactly the excesses. Also a computational procedure is presented based on the direct method (see [6], [7]) that in this case reveals itself to be effective.

Keywords

supply excess demand excess Lagrangean function direct method 

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Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  • Patrizia Daniele
    • 1
  1. 1.Dipartimento di MatematicaUniversità di CataniaCatania

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