ABSTRACT
The paper studies the problem of characterizing the optimality of competitive programs in terms of “decentralizable” conditions. We show that, when future utilities are discounted, and the optimal stationary stock is proportionately expansible, then optimality of competitive programs can be characterized by the condition that the scalar product of the difference of prices and quantities, between those of the given competitive program and those of the optimal stationary program, be non-positive period by period. Jornal of Economic Literature Classification Number: 111. © 1988 Academic Press, Inc.
