Efficient Allocation by way of Equal Margins

Conferencia Dpto. Estadística e Investigación Operativa
Sjur Didrik Flåm
University of Bergen (Norway)
Efficient Allocation by way of
Equal Margins
Abstract. The economic concept of margin guides or certifies efficientuse of scarce
resources. Broadly, under efficient allocation, competing ends orusers ought see
equal margins.
Good application of this helpful maxim is, however, often hampered,
andoccasionally misguided, by concerns with classical differentiability of
objectivesor interiority of solutions. Circumventing such concerns, this paper
unifiesmanifold instances. Presuming transferable or quasi-linear utility, it uses
coincidenceof essential margins to characterize core solutions and
competitiveequilibria - and it outlines how such outcomes could be reached by
repeatedexchanges. The paper also provides blitz approaches to deductibles and
prioritizedclaims, seen in finance and insurance.
Key words: shadow prices, generalized differentials, normal cones,
transferableutility, core, competitive equilibrium, insurance with deductible.
Math. Subject classification: 91B02, 91B15.
JEL classification: C62, C71, D33, D61.
Fecha: Jueves, día 22 de enero de 2015, a las 12.30 h.
Lugar: Seminario de Matemáticas y Estadística