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Variational Inequality Type Formulations of General Market Equilibrium Problems with Local Information

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Abstract

We suggest a new approach to creation of general market equilibrium models involving economic agents with local and partial knowledge about the system and under different restrictions. The market equilibrium problem is then formulated as a quasi-variational inequality that enables us to establish existence results for the model in different settings. We also describe dynamic processes, which fall into information exchange schemes of the proposed market model. In particular, we propose an iterative solution method for quasi-variational inequalities, which is based on evaluations of the proper market information only in a neighborhood of the current market state without knowledge of the whole feasible set and prove its convergence.

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Acknowledgements

The author is grateful to referees for their valuable comments.

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Authors and Affiliations

  1. Department of System Analysis and Information Technologies, Kazan Federal University, ul. Kremlevskaya, 18, Kazan, Russia, 420008

    Igor Konnov

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  1. Igor Konnov
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Correspondence to Igor Konnov.

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Communicated by Vladimir Veliov.

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Konnov, I. Variational Inequality Type Formulations of General Market Equilibrium Problems with Local Information. J Optim Theory Appl 188, 332–355 (2021). https://doi.org/10.1007/s10957-020-01777-9

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  • DOI: https://doi.org/10.1007/s10957-020-01777-9

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