Discounting and optimizing: capital accumulation problems as variational minmax problems

Article Abstract:

Variational utility functions are used in determining optimal capital accumulation paths. These functions, which include recursive utility functions and standard additive utility functions, indicate that optimal capital paths must follow a stationary dynamical system and two transversatility conditions of infinity. However, recursive utility functions are more appropriate for general settings while standard additive utility functions applies to more complex capital accumulation problems.

Models, Capital formation, Utility theory, Utility functions, Variational principles

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Multi-commodity consumer search

Article Abstract:

An analysis is made of the optimal search strategy in the standard consumer demand problem for buyers who desire to purchase any combination of different commodities possibly from several different companies but are not perfectly informed about the prices charged by each firm for any of the commodities. Results, which are discussed, raise a number of significant issues, one of which is the need to separately study the two components that make up consumers' realized purchase decisions.

Economics, Research and Development in the Social Sciences and Humanities, Consumer Behavior, Case studies, Economic research, Online searching, Searching behavior

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On the different notions of arbitrage and existence of equilibrium

Article Abstract:

Proof for an equilibrium existence theorem for finite dimensional economics with unbounded below consumption sets was established. The assumption used in the study was that individual rational utility set is compact. Moreover, the demand approach was favored over the standard Negishi's approach. The different concepts of no-arbitrage were then compared with the existing literature and conditions for equivalence given between existence of equilibrium and absence of arbitrage.

Economic aspects, Equilibrium (Economics), Arbitrage

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