New conditions for the existence of equilibrium prices

Authors

  • Aram V. Arutyunov RUDN University, Department of Nonlinear Analysis and Optimization, Moscow, Russian Federation
  • Natalia G. Pavlova RUDN University, Department of Nonlinear Analysis and Optimization, Moscow, Russian Federation
  • Aleksandr A. Shananin Moscow Institute Of Physics and Technology, Dolgoprudny, Moscow Region, Russian Federation + Dorodnicyn Computing Centre, FRC CSC RAS, Moscow, Russian Federation + RUDN University, Department of Nonlinear Analysis and Optimization, Moscow, Russian Federat

DOI:

https://doi.org/10.2298/YJOR170212021A

Keywords:

economic equilibrium, demand function, supply function, transaction costs, coincidence points, covering mappings

Abstract

We study the existence of equilibrium price vector in a supply-demand model taking into account the transaction costs associated with the sale of products. In this model, the demand function is the solution to the problem of maximizing the utility function under budget constraints. The supply function is the solution to the problem of maximizing the profit (with given transaction losses) on the technology set. We establish sufficient conditions for the existence of the equilibrium price vector, which are consequences of some theorems in the theory of covering mappings.

References

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Arutyunov, A., Avakov, E., Gelman, B., Dmitruk, A., Obukhovskii, V., Locally covering maps in metric spaces and coincidence points, J. Fixed Point Theory Appl., 5 (1) (2009) 105-127.

Arutyunov, A. V., Coincidence points of two maps, Functional Analysis and Its Applications, 48 (1) (2014) 72-75.

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Published

2018-02-01

Issue

Vol. 28 No. 1 (2018)

Section

Research Articles

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