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Demand Set
A demand set is a model of the most-preferred bundle of goods an agent can afford. The set is a function of the preference relation for this agent, the prices of goods, and the agent's endowment. Assuming the agent cannot have a negative quantity of any good, the demand set can be characterized this way: Define L as the number of goods the agent might receive an allocation Allocation may refer to: Computing * Block allocation map * C++ allocators * Delayed allocation * File allocation table * IP address allocation * Memory allocation * No-write allocation (cache) * Register allocation Economics * Asset alloca ... of. An allocation to the agent is an element of the space \mathbb_+^L; that is, the space of nonnegative real vectors of dimension L. Define \succeq_p as a weak preference relation over goods; that is, x \succeq_p x' states that the allocation vector x is weakly preferred to x'. Let e be a vector representing the quantities of the agent's endowment of each po ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Agent (economics)
In economics, an agent is an actor (more specifically, a decision maker) in a model of some aspect of the economy. Typically, every agent makes decisions by solving a well- or ill-defined optimization or choice problem. For example, ''buyers'' (consumers) and ''sellers'' (producers) are two common types of agents in partial equilibrium models of a single market. Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy. Each of these agents may play multiple roles in the economy; households, for example, might act as consumers, as workers, and as voters in the model. Some macroeconomic models distinguish even more types of agents, such as workers and shoppers or commercial banks. The term ''agent'' is also used in relation to principal–agent models; in this case, it refers specifically to someo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |