IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2012y2012i6id878p801-821.html
   My bibliography  Save this article

Podmienky optimálnosti Kuhna-Tuckera v modeloch rovnováhy trhu sieťových odvetví
[Kuhn-Tucker Optimality Conditions in Equilibrium Models of Network Industries Market]

Author

Listed:
  • Eleonora Fendeková
  • Michal Fendek

Abstract

Currently a considerable attention to the subject of network industries is being paid in discussions on various levels. It is understandable as network industries in fact ensure the production and distribution of energy sources which play a key role in developed economies. The discussions are usually focused on the question of reasonable profit of network industries subjects and on the other hand the question of generally acceptable costs. Equilibrium on the network industries market, as well as on any market, is being created based on the level of demand and supply on relevant market. In this article we will discuss the analysis of optimization models of consumers and producers behavior on the network industries market as well as the question of effectiveness of this specific market. We will point out certain features of network industries market where the consumer usually is not able to substitute a product of network industry with other product of appropriate characteristics in a short time period, thus considering the product being exclusive. This exclusivity can be formally represented in the utility function and other related analytical tasks. In paper we study the properties of a network industry optimization problem and economically interpretable implications of Kuhn-Tucker optimality conditions of this model.

Suggested Citation

  • Eleonora Fendeková & Michal Fendek, 2012. "Podmienky optimálnosti Kuhna-Tuckera v modeloch rovnováhy trhu sieťových odvetví [Kuhn-Tucker Optimality Conditions in Equilibrium Models of Network Industries Market]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(6), pages 801-821.
  • Handle: RePEc:prg:jnlpol:v:2012:y:2012:i:6:id:878:p:801-821
    DOI: 10.18267/j.polek.878
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.878.html
    Download Restriction: free of charge

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.878.pdf
    Download Restriction: free of charge

    File URL: https://libkey.io/10.18267/j.polek.878?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    utility function; network industries; social welfare; consumer preferences; consumers´ surplus; producers´ surplus; Kuhn-Tucker optimality conditions;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

    Statistics

    Access and download statistics

    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:prg:jnlpol:v:2012:y:2012:i:6:id:878:p:801-821. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    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.