Abstract
In this paper we consider the problem of computing market equilibrium when utilties are homothetic concave functions. We use the Fisher market model. The problem of finding a tâtonnement process for equilibrium in this case has been the subject of recent papers and determining an approximation is of considerable interest. Our buy-sell algorithm starts with an arbitrary price vector and converges to an ε-equilibrium price vector in time proportional to O(1/ε 2). This process attempts to closely mimic the convergence process of real-life markets.
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Kapoor, S. (2011). Buy-Sell Auction Mechanisms in Market Equilibrium. In: Chen, N., Elkind, E., Koutsoupias, E. (eds) Internet and Network Economics. WINE 2011. Lecture Notes in Computer Science, vol 7090. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-25510-6_20
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DOI: https://doi.org/10.1007/978-3-642-25510-6_20
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-25509-0
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