Infinite inequality systems and cardinal revelations

B-Tier
Journal: Economic Theory
Year: 2005
Volume: 26
Issue: 4
Pages: 947-971

Authors (2)

Marcel Richter Kam-Chau Wong (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Many economics problems are maximization or minimization problems, and can be formalized as problems of solving “linear difference systems” of the form $r_i-r_j \geqq c_{ij}$ and r k -r l > c kl , for r-unknowns, with given c-constants. They typically involve strict as well as weak inequalities, with infinitely many inequalities and unknowns. Since strict inequalities are not preserved under passage to the limit, infinite systems with strict inequalities are notoriously hard to solve. We introduce a unifying tool for solving them. Our main result (Theorem 1 for the countable case, Theorem [2] for the not-necessarily-countable case) introduces a uniform solvability criterion (the $\omega$ -Axiom), and our proof yields a method for solving those that are solvable. The axiom’s economic intuition extends the traditional ordinal notion of revealed preference to a cardinal notion. We give applications in producer theory, consumer theory, implementation theory, and constrained maximization theory. Copyright Springer-Verlag Berlin/Heidelberg 2005

Technical Details

RePEc Handle
repec:spr:joecth:v:26:y:2005:i:4:p:947-971
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29