Makhort A.P.
Influence of consumption preferences on equilibrium of an open economy

This investigation describes possible equilibrium states of an open economy under the presence of monopolies. Walrasian equilibrium is considered. Each subject of the economy is an insatiable consumer. The structure of consumption in the economy depends on volumes of production of goods. An algorithm is proposed to solve the problem of economic equilibrium. The presented constraints on model characteristics provide the existence of equilibrium in the economy. The possibility of staying the economy in an equilibrium state with specified intervals of values of selected characteristics is revealed. The achievement of a desirable equilibrium state is provided by the choice of levels of taxation of monopolies. © 2016, Springer Science+Business Media New York.

Keywords: behavior strategy, demand, economical equilibrium, monopoly, supply, taxation, Taxation, Behavior strategy, Consumer preferences, demand, Economic equilibrium, Equilibrium state, monopoly, supply, Walrasian equilibrium, Competition

Cite:
Makhort A.P. (2016). Influence of consumption preferences on equilibrium of an open economy. Cybernetics and Systems Analysis, 52 (4), 11-28. doi: https://doi.org/10.1007/s10559-016-9853-y http://jnas.nbuv.gov.ua/article/UJRN-0001294501 [In Russian].