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Decentralized optimization versus social optima. A comparison on a linear market. (English) Zbl 0659.90020

The aim of this paper is to explore the relations between the results of an individual optimization process and a social optimum in the spatial context. First, a model for social optimization with Rawlsian objective is developed and a procedure for its solution is desribed and proved. Comparisons between individual and social optima are analyzed on the basis of a series of tests.

MSC:

91B24 Microeconomic theory (price theory and economic markets)
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