A priori estimates of the maximal utility in Slutskii’s theory

Yu. Ya. Agranovich^a, N. V. Kontsevaya^b, V. L. Khatskevich<sup>c

a</sup> Voronezh State Technical University
^b Financial University under the Government of the Russian Federation, Moscow
^c Voronezh State University

Abstract: In this paper, we examine stability conditions of stationary points of a dynamical system in an example of simulation of utility functions that determine a control mechanism of purchasing goods. Applying the minimization method for projections of subtangents (the subtangential method) at points of the dynamical curve on the utility axis, we propose a method of determining the restrictions on goods, which is most convenient in the control context.

UDC: 517.928

 English version: Journal of Mathematical Sciences, 2016, 216:5, 679–684