Opuscula Math. 34, no. 4 (2014), 827-835
Necessary and sufficient conditions for a Pareto optimal allocation in a discontinuous Gale economic model
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.
- Received: 2014-05-02.
- Revised: 2014-09-29.
- Accepted: 2014-09-29.