Abstract
The decentralized evolution of allocations of resources among consumers described by their change functions is characterized by a regulation rule associating with each allocation the subset prices regulating them. Sufficient budgetary conditions, analogous to the Walras law, for the viability of such evolutions are then provided. Next, the issue of finding feedback controls is tackled: Conditions under which slow evolutions are given. More to the point, dynamical feedback controls obeying the inertia principle are provided: Prices are changed only when the viability of the evolution mechanism is at stake. We then derive the differential equations governing the heavy evolution of prices: For a given bound on inflation rates, the price evolves with minimal velocity.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.