Operator Theorems with Applications to Distributive Problems and Equilibrium Models

Presentation Many economic problems, as equilibrium models, input-output analysis, rational behaviour, etc. , are usually modelled in terms of operators in Euclidean spaces. This monograph deals with the analysis of a number of formal problems involving t

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377

Antonio Villar

Operator Theorems with Applications to Distributive Problems and Equilibrium Models

Springer-Verlag Berlin Heidelberg New York London Paris Tokyo Hong Kong Barcelona Budapest

Author Prof. Dr. Antonio Villar Department of Economics University of Alicante E-03071 Alicante, Spain

ISBN-13: 978-3-540-55087-7 001: 10.1007/978-3-642-45711-1

e-ISBN-13: 978-3-642-45711-1

This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, re-use of illustrations, recitation, broadcasting, reproduction on microfilms or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. © Springer-Verlag Berlin Heidelberg 1992 Typesetting: Camera ready by author 42/3140-543210 - Printed on acid-free paper

"Some of the so-called technical issues are really of the essence of the so-called deep issues and you really can't separate them at all. Each one illuminates the other. In fact they fuse together

and

in

some

cases

they're

identical."

K. J. ARROW

(!la.cW1 rghaice and. WcllaJte, nO 1, 19Er1)

FOREWORD

Presentation

Many analysis,

economic

problems,

rational behaviour,

as

equilibrium

models,

input-output

etc. , are usually modelled in terms of

operators in Euclidean spaces. This monograph deals with the analysis of a number of formal problems involving this kind of operators (with particular

reference

inequalities),

and

to

their

complementarity

problems

applications

distributive

to

and

variational

problems

and

equilibrium models. Thus the purpose of this work is to provide a set of new results on the solvability of those problems, and a number of economic

applications

that

will

illustrate

the

interest

of

these

results in economics. It is worth stressing from the very begining that our analysis concentrates

on

the

existence

(and

in

some

cases

optimality)

of

solutions. That is what is meant here by solvability (in particular, nothing

will

be

said

with

respect

to

the

uniqueness,

stability,

sensitivity analysis or computation of solutions). The results

on the

solvability of

operator

problems

presented

here, were actually arrived at as a way of solving specific economic models. Yet we are going to relate this case by somehow reversing the way it happened, that is, starting with the formal results and then presenting a number of economic models which appear as applications of

VIII these formal results. The rationale for this approach is twofold. First, it provides a neat track via which to go through the whole work. Then, because I would

like

to

emphasize

the

interest

of

complementarity

and

variational inequalities problems in economic modelling. To under