IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-04141029.html
   My bibliography  Save this paper

Ricardo And Lemke

Author

Listed:
  • Christian Bidard

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

We study the economic mechanism which sustains the substitution of a marginal method for another when demand increases, in the presence of scarce resources. In those Ricardian dynamics, it is shown that the outgoing method is determined by the quantity side of the problem, the incoming method by the value side. That discrepancy explains both the possible failure of the dynamics and the possible occurrence of multiple equilibria. Conditions for existence, uniqueness and the working of the dynamics are stated. A parallel is drawn with the parametric Lemke algorithm used to solve linear complementarity problems.

Suggested Citation

  • Christian Bidard, 2012. "Ricardo And Lemke," Working Papers hal-04141029, HAL.
    • Handle: RePEc:hal:wpaper:hal-04141029
    Note: View the original document on HAL open archive server: https://hal.science/hal-04141029
    as

    Download full text from publisher

    File URL: https://hal.science/hal-04141029/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christian Bidard, 2012. "The Frail Grounds of the Ricardian Dynamics," Working Papers hal-04141039, HAL.
    2. Erreygers, Guido, 1995. "On the Uniqueness of Square Cost-Minimizing Techniques," The Manchester School of Economic & Social Studies, University of Manchester, vol. 63(2), pages 145-166, June.
    3. Christian Bidard & Guido Erreygers, 1998. "The number and type of long-term equilibria," Journal of Economics, Springer, vol. 67(2), pages 181-205, June.
    4. Dantzig, George B. & Manne, Alan S., 1974. "A complementarity algorithm for an optimal capital path with invariant proportions," Journal of Economic Theory, Elsevier, vol. 9(3), pages 312-323, November.
    5. Mas-Colell,Andreu, 1990. "The Theory of General Economic Equilibrium," Cambridge Books, Cambridge University Press, number 9780521388702.
    6. C. E. Lemke, 1965. "Bimatrix Equilibrium Points and Mathematical Programming," Management Science, INFORMS, vol. 11(7), pages 681-689, May.
    7. Christian Bidard, 2012. "The Frail Grounds of the Ricardian Dynamics," EconomiX Working Papers 2012-43, University of Paris Nanterre, EconomiX.
    8. Salvadori, Neri, 1986. "Land and Choice of Techniques within the Sraffa Framework," Australian Economic Papers, Wiley Blackwell, vol. 25(46), pages 94-105, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Bidard, 2012. "Ricardo And Lemke," EconomiX Working Papers 2012-48, University of Paris Nanterre, EconomiX.
    2. Christian Bidard, 2012. "The Ricardo-Lemke parametric algorithm on oddity and uniqueness," Working Papers hal-04141043, HAL.
    3. Christian Bidard, 2012. "The Ricardo-Lemke parametric algorithm on oddity and uniqueness," EconomiX Working Papers 2012-41, University of Paris Nanterre, EconomiX.
    4. Bidard, Christian, 2014. "The Ricardian rent theory: an overview," Centro Sraffa Working Papers CSWP8, Centro di Ricerche e Documentazione "Piero Sraffa".
    5. Christian Bidard, 2014. "The Wage Curve in Austrian Models," EconomiX Working Papers 2014-54, University of Paris Nanterre, EconomiX.
    6. Christian Bidard, 2011. "The Ricardian Dynamics Revisited," Working Papers hal-04140981, HAL.
    7. Christian Bidard, 2014. "The Ricardian rent theory two centuries after," EconomiX Working Papers 2014-54, University of Paris Nanterre, EconomiX.
    8. Christian Bidard, 2015. "An oddity property for cross-dual games," EconomiX Working Papers 2015-4, University of Paris Nanterre, EconomiX.
    9. Christian Bidard, 2014. "The Ricardian rent theory two centuries after," Working Papers hal-04141289, HAL.
    10. Christian Bidard, 2012. "The Frail Grounds of the Ricardian Dynamics," EconomiX Working Papers 2012-43, University of Paris Nanterre, EconomiX.
    11. P. Herings & Ronald Peeters, 2010. "Homotopy methods to compute equilibria in game theory," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 42(1), pages 119-156, January.
    12. Christian Bidard, 2015. "An oddity property for cross-dual games," Working Papers hal-04141427, HAL.
    13. Christian Bidard, 2012. "The Frail Grounds of the Ricardian Dynamics," Working Papers hal-04141039, HAL.
    14. repec:ebl:ecbull:v:4:y:2005:i:7:p:1-7 is not listed on IDEAS
    15. Kubler, Felix & Schmedders, Karl, 2010. "Competitive equilibria in semi-algebraic economies," Journal of Economic Theory, Elsevier, vol. 145(1), pages 301-330, January.
    16. Zhang, Bin, 2012. "Multi-tier binary solution method for multi-product newsvendor problem with multiple constraints," European Journal of Operational Research, Elsevier, vol. 218(2), pages 426-434.
    17. Bonnisseau, Jean-Marc & Nguenamadji, Orntangar, 2010. "On the uniqueness of local equilibria," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 623-632, September.
    18. Egbert Dierker & Hans Haller, 1990. "Tax systems and direct mechanisms in large finite economies," Journal of Economics, Springer, vol. 52(2), pages 99-116, June.
    19. Daniele Cassese & Paolo Pin, 2018. "Decentralized Pure Exchange Processes on Networks," Papers 1803.08836, arXiv.org, revised Mar 2022.
    20. del Mercato, Elena L. & Nguyen, Van-Quy, 2023. "Sufficient conditions for a “simple” decentralization with consumption externalities," Journal of Economic Theory, Elsevier, vol. 209(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-04141029. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.