Abstract
In proposing an open problem, Codenotti et al.[3, 5] conjectured that the welfare adjustment scheme can approximate the general market equilibrium by iteratively using an oracle for the Fisher’s model. In this work, we analyze the scheme for a large class of market models. We show that the iterative step is in fact a Lipschitz continuous function and the residue approximation of its fixed point is a good approximation of the market equilibrium price.
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Huang, LS. (2005). A Fixed Point Approach for the Computation of Market Equilibria. In: Deng, X., Ye, Y. (eds) Internet and Network Economics. WINE 2005. Lecture Notes in Computer Science, vol 3828. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11600930_102
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DOI: https://doi.org/10.1007/11600930_102
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-30900-0
Online ISBN: 978-3-540-32293-1
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