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Pure exchange competitive equilibrium under uncertainty

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Abstract

We investigate in this paper a version of pure exchange competitive equilibrium under uncertain circumstances. Those uncertain factors are embedded in each agent’s preference, which is characterized by the uncertain utility function. By maximizing the expected utility of each agent, we formulate this kind of pure exchange competitive equilibrium problem into a quasi-variational inequality problem. This idea is applied in a pure exchange economy which consists of two agents and two goods. And we find the competitive equilibrium of this economy with each agent’s preference being an uncertain variable.

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Acknowledgements

The first author is also deeply indebted to Shawnee State University of USA for the support during her visiting duration.

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Authors and Affiliations

  1. Nanjing University of Science and Technology, Nanjing, China

    Qiqiong Chen & Yuanguo Zhu

Authors
  1. Qiqiong Chen
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  2. Yuanguo Zhu
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Corresponding author

Correspondence to Yuanguo Zhu.

Additional information

National Natural Science Foundation of China (Grant No. 61673011) and China Scholarship Council (Grant No. 201406840039).

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Chen, Q., Zhu, Y. Pure exchange competitive equilibrium under uncertainty. J Ambient Intell Human Comput 8, 759–768 (2017). https://doi.org/10.1007/s12652-017-0500-x

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  • DOI: https://doi.org/10.1007/s12652-017-0500-x

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