Solvability of a class of singular fourth order equations of Monge-Amp\`ere type

TL;DR

This paper investigates the solvability of highly singular fourth order Monge-Ampère type equations, establishing global solutions in two dimensions and connecting to economic models with convexity constraints.

Contribution

It introduces new methods using Legendre transforms to solve singular Abreu equations and demonstrates approximation of economic variational problems by these solutions.

Findings

Established global solutions for highly singular Abreu equations in 2D.

Proved approximation of economic models with convexity constraints by solutions of Abreu equations.

Extended solvability results to all q>1 in the context of the Rochet-Choné model.

Abstract

We study the solvability of the second boundary value problem for a class of highly singular fourth order equations of Monge-Amp\`ere type. They arise in the approximation of convex functionals subject to a convexity constraint using Abreu type equations. Both the Legendre transform and partial Legendre transform are used in our analysis. In two dimensions, we establish global solutions to the second boundary value problem for highly singular Abreu equations where the right hand sides are of $q$-Laplacian type for all $q>1$. We show that minimizers of variational problems with a convexity constraint in two dimensions that arise from the Rochet-Chon\'e model in the monopolist's problem in economics with $q$-power cost can be approximated in the uniform norm by solutions of the Abreu equation for a full range of $q$.