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Quasivariational inequalities for dynamic competitive economic equilibrium problems in discrete time

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Abstract

Equilibrium is a central concept in numerous disciplines including economics, management science, operations research, and engineering. We are concerned with an evolutionary quasivariational inequality which is connected to discrete dynamic competitive economic equilibrium problem in terms of maximization of utility functions and of excess demand functions. We study the discrete equilibrium problem by means of a discrete time-dependent quasivariational inequality in the discrete space \(\ell ^2([0,T]_{\mathbb {Z}},\mathbb {R})\). We ensure an existence result of discrete time-dependent equilibrium solutions. Finally, we show the stability of equilibrium in a completely decentralized Walrasian general equilibrium economy in which prices are fully controlled by economic agents, with production and trade occurring out of equilibrium.

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Acknowledgements

The authors gratefully thank to Editor and Referees for their constructive comments and recommendations which definitely helped to improve the readability and quality of the paper.

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  1. Shapour Heidarkhani, David Barilla and Giuseppe Caristi contributed equally to this work.

Authors and Affiliations

  1. Department of Mathematics, Faculty of Sciences, Razi University, Kermanshah, 67149, Iran

    Shapour Heidarkhani

  2. Department of Economics, Messina University, Via dei Verdi, 75, 98122, Messina, Italy

    David Barilla & Giuseppe Caristi

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  1. Shapour Heidarkhani
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  2. David Barilla
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  3. Giuseppe Caristi
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Correspondence to Giuseppe Caristi.

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Heidarkhani, S., Barilla, D. & Caristi, G. Quasivariational inequalities for dynamic competitive economic equilibrium problems in discrete time. Decisions Econ Finan 46, 277–304 (2023). https://doi.org/10.1007/s10203-022-00385-8

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