Opuscula Math. 34, no. 4 (2014), 827-835
Necessary and sufficient conditions for a Pareto optimal allocation in a discontinuous Gale economic model
Anna Michalak
Marcin Studniarski
Abstract.
In this paper we examine the concept of Pareto optimality in a simplified Gale economic model without assuming continuity of the utility functions. We apply some existing results on higher-order optimality conditions to get necessary and sufficient conditions for a locally Pareto optimal allocation.
Keywords:
Gale model, discontinuous functions, generalized directional derivatives, higher-order conditions, Pareto optimality.
Mathematics Subject Classification:
91B50, 90C29, 49J52.
About the authors ▼
Anna Michalak
University of Łódź, Faculty of Economics and Sociology, Department of Econometrics, Rewolucji 1905 r. No. 41, 90-214 Łódź, Poland
Marcin Studniarski
University of Łódź, Faculty of Mathematics and Computer Science, Chair of Algorithms and Databases, S. Banacha No. 22, 90-238 Łódź, Poland
About the article ▼
Received: 2014-05-02.
Revised: 2014-09-29.
Accepted: 2014-09-29.
Cite this article as ▼
Anna Michalak, Marcin Studniarski, Necessary and sufficient conditions for a Pareto optimal allocation in a discontinuous Gale economic model, Opuscula Math. 34, no. 4 (2014), 827-835,
http://dx.doi.org/10.7494/OpMath.2014.34.4.827.
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