Economics Department, University of Manchester, Oxford Road, Manchester, M13 9PL, United Kingdom ; School of Mathematics and Leeds University Business School, Leeds University, Leeds LS2 9JT, United Kingdom
Abstract:
This paper examines a class of random dynamical systems related to the classical von Neumann and Gale models of economic dynamics. Such systems are defined in terms of multivalued operators in spaces of random vectors, possessing certain properties of convexity and homogeneity. We establish a general existence theorem for equilibrium, which holds under conditions analogous to the standard deterministic ones. Our results answer questions that remained open for more than three decades.