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Equilibrium Prices and Quasiconvex Duality

  • Phan Thien Thach
Conference paper
Part of the Nonconvex Optimization and Its Applications book series (NOIA, volume 77)

Abstract

Given an economy in which there is a commodity trading between two Sectors A and B. For a given vector of prices Sector B is interested in getting a maximal commodity worth under an expenditure constraint. Sector A is interested in finding a feasible vector of prices such that the level of trade allowance per one unit of commodity worth is maximized. The problem under consideration is a quasiconvex minimization. Using quasiconvex duality we obtain a dual problem and a generalized Karush-Kuhn-Tucker condition for optimality. The optimal vector of prices can be interpreted as equilibrium and as a linearization of the commodity worth function at the optimal dual’s solution.

Keywords

Quasiconvex Duality Price Equilibrium 

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Copyright information

© Springer Science + Business Media, Inc. 2005

Authors and Affiliations

  • Phan Thien Thach
    • 1
  1. 1.Institute of MathematicsVietnam

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