Theorem 11.21 -- equilibrium_price_set_is_lnat_polyhedron
OpenDiscreteConvex.EconomicEquilibriumB.equilibrium_price_set_is_lnat_polyhedrondiscrete-convex-analysisdiscrete-geometry
Theorem 11.21 (p.343). GOAL. The set of all equilibrium price vectors for a given allocation is an L-convex polyhedron, described explicitly by the inequality system (11.43): for and for .
Chosen as goal: this is the sharpest structural result of chapter 11's computation section, upgrading the qualitative L-convex-polyhedron fact (Theorem 11.16, mission 14-economic-equilibrium) to a concrete, linear-programming-checkable description, and is the fact Theorem 11.22 (also placed) builds on directly.
(Murota, Discrete Convex Analysis, SIAM 2003, DOI 10.1137/1.9780898718508, p.343, Theorem 11.21.)
Preamble
import Mathlib import Definitions.Def_DiscreteConvex_EconomicEquilibriumB_IsLNaturalConvexPolyhedron import Definitions.Def_DiscreteConvex_EconomicEquilibriumB_EquilibriumPriceSet import Definitions.Def_DiscreteConvex_EconomicEquilibriumB_EquilibriumPricePolyhedronE import Definitions.Def_DiscreteConvex_EconomicEquilibriumB_MNaturalConcave import Definitions.Def_DiscreteConvex_EconomicEquilibriumB_MNaturalConvexC import Definitions.Def_DiscreteConvex_EconomicEquilibriumB_IsOptimalAllocation
Formal statement
namespace DiscreteConvex.EconomicEquilibriumB
open Classical
open scoped Pointwise
variable {K : Type*} [Fintype K] [DecidableEq K]
/-- Theorem 11.21 (p.343). GOAL. The set `P*` of all equilibrium price vectors for a given
allocation `(x,y)` is an L♮-convex polyhedron, described explicitly by the inequality system
(11.43). Murota, *Discrete Convex Analysis*, SIAM 2003, §11.5 assumes the utilities
M♮-concave, the cost functions M♮-convex and `(x,y)` an optimal allocation of the associated
MSFP2, and its bounds `ℓ(j)`, `u(j)`, `u(i,j)` are read in `EReal`: with one good, one consumer
with `U(0) = U(1) = 0`, `U(2) = 5` and `-∞` elsewhere and one producer with `C` the indicator of
`0`, the equilibrium price set is `{p ≥ 5/2}` while the bounds taken with `unbotD 0`/`untopD 0`
give `{0}`. -/
theorem equilibrium_price_set_is_lnat_polyhedron {H L : Type*} [Fintype H] [Fintype L]
[Nonempty H] [Nonempty L] (U : H → (K → ℤ) → WithBot ℝ) (C : L → (K → ℤ) → WithTop ℝ)
(x : H → (K → ℤ)) (y : L → (K → ℤ))
(hU : ∀ h, MNaturalConcave (U h)) (hC : ∀ l, MNaturalConvexC (C l))
(hopt : IsOptimalAllocation U C x y) :
IsLNaturalConvexPolyhedron (EquilibriumPriceSet U C x y) ∧
EquilibriumPriceSet U C x y = EquilibriumPricePolyhedronE U C x y := by sorry
end DiscreteConvex.EconomicEquilibriumB
Source
Murota, Discrete Convex Analysis, SIAM 2003, DOI 10.1137/1.9780898718508, p.343, Theorem 11.21
Human review
Confirmed by the mission captain (proposal self-audit).
Confirmed by the moderator at approval.