Abstract
We consider a time-dependent economic market in presence of excess on the supplies and on the demands and we assume that the demand and supply prices depend on the quantity of supplies and demands. This model generalizes the classic spatial price equilibrium problems and adopts, unchanged, the concept of the equilibrium, namely that at the same time the demand price is equal to the supply price plus the cost of transportation, if there is trade between the pair of supply and demand markets. The equilibrium conditions that describe this “disequilibrium” model are expressed in terms of a time-dependent Variational Inequality for which an existence theorem is shown. Moreover by means of the Lagrangean Theory we find the dual variables which have a remarkable economic meaning.
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© 2005 Springer Science+Business Media, Inc.
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Milasi, M., Vitanza, C. (2005). Variational Inequality and Evolutionary Market Disequilibria: The Case of Quantity Formulation. In: Giannessi, F., Maugeri, A. (eds) Variational Analysis and Applications. Nonconvex Optimization and Its Applications, vol 79. Springer, Boston, MA. https://doi.org/10.1007/0-387-24276-7_41
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DOI: https://doi.org/10.1007/0-387-24276-7_41
Publisher Name: Springer, Boston, MA
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