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Stability of critical points for vector valued functions and Pareto efficiency

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Author Info
Miglierina Enrico () (Department of Economics, University of Insubria, Italy)
Abstract

In this work we consider the critical points of a vector-valued function f, defined as in [17] and [23]. We study their stability in order to obtain a necessary condition for Paret efficiency. We point out, by an example, that the classical notions of stability (concerning a single point) are not suitable in the settings. We use a stability notion for sets to prove that the counterimage of a minimal point for f is stable.This result is based on the study of a dynamical system defined by a differential inclusion. In the vector case this inclusion plays the same role as gradient system in the scalar setting.

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Paper provided by Department of Economics, University of Insubria in its series Economics and Quantitative Methods with number qf0301.

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Length: 13 pages
Date of creation: Jan 2003
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Handle: RePEc:ins:quaeco:qf0301

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  1. Simon, Carl P. & Titus, Charles, 1975. "Characterization of optima in smooth Pareto economic systems," Journal of Mathematical Economics, Elsevier, vol. 2(2), pages 297-330. [Downloadable!] (restricted)
  2. Wan, Yieh-Hei, 1975. "On local Pareto optima," Journal of Mathematical Economics, Elsevier, vol. 2(1), pages 35-42, March. [Downloadable!] (restricted)
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