Equilibrium in Market Models with Known Elasticities

Closed and open market models, in which the supply and demand functions are restored by their price elasticities, are studied. For the closed market model criteria on the existence of equilibrium is obtained as the corollary of existence theorems for the solutions to systems of linear equations and inequalities. The results of the covering maps theory, namely existence theorems of a coincidence point, are applied to obtain sufficient conditions on the existence of an equilibrium in open market model and to develop search algorithm of an equilibrium in this model. Numerical experiments illustrating the obtained results are conducted. © 2021 ASSA.

Authors
Arutyunov A. 1 , Kotyukov A.2 , Pavlova N. 1, 2, 3
Publisher
International Institute for General Systems Studies
Number of issue
4
Language
English
Pages
130-144
Status
Published
Volume
21
Year
2021
Organizations
  • 1 RUDN University, Moscow, Russian Federation
  • 2 V.A. Trapeznikov Institute of Control Sciences of RAS, Moscow, Russian Federation
  • 3 Moscow Institute of Physics and Technology, Moscow, Russian Federation
Keywords
Demand; Economical equilibrium; Elasticity; Market model; Supply
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