Homepage Social equilibria for competitive resource allocation models presented by Victoria Kreps St. Petersburg Institute for Economics and Mathematics, Russian Academy of Sciences, Tchaikovskogo 1, St. We consider a multistage economic model of resource allocation between production and consumption controlled by several agents. Individual interests of agents are determined with their individual objective functions. These interests do not coinside and actions of agents affect the incomes of partners.
Social preference is expressed with public objective function.
We assume that the production is given by a stochastic multiplicative production function. Sequential proportion coefficients are independent identically distributed positive random variables. We suppose that g is a homogeneous convex function. In particular, it may be the sum of individual indices. It increases on his own consumption part and decreases on the consumption parts of the partners.