This paper presents an exact penalization theory of the generalized Nash equilibrium problem (GNEP) that has its origin from renowned Arrow–Debreu general economic model. Whereas latter model is foundation much mathematical economics, GNEP provides a multiagent noncooperative competition found many contemporary applications in diverse engineering domains. The most salient feature distinguishes ...

This paper presents a number of apparent anomalies in rational choice scenarios, and their translation into the logic of everyday reasoning. Three classes of examples that have been discussed in the context of probabilistic choice since the 1960s (by Debreu, Tversky and others) are analyzed in a non-probabilistic setting. It is shown how they can at the same time be regarded as logical problems...

Prior laboratory experiments have studied general equilibrium economies constructed from “induced preferences” for artificial goods. We introduce new methods that allow us to study economies constructed instead from subjects’ actual, “homegrown” preferences. Our subjects reveal their preferences by choosing portfolios of Arrow securities from budget lines through fixed endowments for a series o...

This paper primarily demonstrates the existence of Arrow–Debreu equilibria in a general class of topological vector spaces of commodity bundles. Two conditions based on production possibilities, preferences, and the topological nature of bounded sets are shown to substitute, in any locally convex space, for the advantages of the Euclidean topology. Examples fulfilling these conditions are suppl...

This paper generalizes the Debreu/Gorman characterization of additively decomposable functionals and separable preferences to infinite dimensions. The first novelty concerns the very definition of additively decomposable functional for infinite dimensions. For decision under uncertainty, our result provides a state-dependent extension of Savage's expected utility. A characterization in terms of...

Much of the early literature on market allocations between safe and risky investments suggested that the market would systematically allocate too few resources to risky investments, particularly because many private risks are not social risks. More recently, however, it has been argued that the stock market provides essentially all the risk-pooling possibilities that could be provided, "that th...

A quantum financial approach to finite games of strategy is addressed, with an extension of Nash’s theorem to the quantum financial setting, allowing for an entanglement of games of strategy with two-period financial allocation problems that are expressed in terms of: the consumption plans’ optimization problem in pure exchange economies and the finite-state securities market optimization probl...

In a Ramsey policy regime, heterogeneity in beliefs about the potential costs of climate change is shown to produce ambiguities that alter carbon prices and taxation. Three sources ambiguity are considered: (i) private sector skeptical, with unknown government, (ii) agents have pessimistic doubts model, or (iii) authority itself does not trust extant scientific model fears worst. These three gi...