58 research outputs found
On Finding the Vertex Connectivity of Graphs
Coordinated Science Laboratory was formerly known as Control Systems LaboratoryJoint Services Electronics Program / N00014-84-C-014
Wages and Utilities in a Closed Economy
The broad objective of this paper is to propose a mathematical model for the
study of causes of wage inequality and relate it to choices of consumption, the
technologies of production, and the composition of labor in an economy. The
paper constructs a Simple Closed Model, or an SCM, for short, for closed
economies, in which the consumption and the production parts are clearly
separated and yet coupled. The model is established as a specialization of the
Arrow-Debreu model and its equilibria correspond directly with those of the
general Arrow-Debreu model. The formulation allows us to identify the
combinatorial data which link parameters of the economic system with its
equilibria, in particular, the impact of consumer preferences on wages. The SCM
model also allows the formulation and explicit construction of the consumer
choice game, where expressed utilities of various labor classes serve as
strategies with total or relative wages as the pay-offs. We illustrate, through
examples, the mathematical details of the consumer choice game. We show that
consumer preferences, expressed through modified utility functions, do indeed
percolate through the economy, and influence not only prices but also
production and wages. Thus, consumer choice may serve as an effective tool for
wage redistribution
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