Abstract
We introduce a new family of utility functions for exchange markets. This family provides a natural and “continuous” hybridization of the traditional linear and Leontief utilities and might be useful in understanding the complexity of computing and approximating market equilibria. Because this family of utility functions contains Leontief utility functions as special cases, finding approximate Arrow-Debreu equilibria with hybrid linear-Leontief utilities is PPAD-hard in general. In contrast, we show that, when the Leontief components are grouped, finite and well-conditioned, we can efficiently compute an approximate Arrow-Debreu equilibrium.
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Chen, X., Huang, LS., Teng, SH. (2006). Market Equilibria with Hybrid Linear-Leontief Utilities. In: Spirakis, P., Mavronicolas, M., Kontogiannis, S. (eds) Internet and Network Economics. WINE 2006. Lecture Notes in Computer Science, vol 4286. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11944874_25
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DOI: https://doi.org/10.1007/11944874_25
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-68138-0
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