This article is cited in 2 papers

The method of meeting trajectories for a linear production-exchange model

V. I. Shmyrev

Sobolev Institute of Mathematics, Siberiam Division of the RAS, Novosibirsk, RUSSIA

Abstract: We study the exchange model of economics whose participants include both consumers and companies producing goods. The production capacities of the companies are restricted by the expenses of a certain single resource. We study in detail the version of the model with fixed budgets of the participants. We present and justify a method for finding the equilibrium, which develops the original approach of polyhedral complementarity. Under a rather slight assumption of nondegeneracy we show that the algorithm enables us to obtain the equilibrium state in finitely many steps.

Keywords: exchange model, economic equilibrium, price vector, polyhedral complementarity, simplex-type algorithm.

UDC: 519.865.3

Received: 07.06.2010

 English version: Journal of Applied and Industrial Mathematics, 2012, 6:4, 490–500

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