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Efficient Computation of Equilibrium Prices for Markets with Leontief Utilities

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Book cover Automata, Languages and Programming (ICALP 2004)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 3142))

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Abstract

We present a polynomial time algorithm for the computation of the market equilibrium in a version of Fisher’s model, where the traders have Leontief utility functions. These functions describe a market characterized by strict complementarity. Our algorithm follows from a representation of the equilibrium problem as a concave maximization problem, which is of independent interest. Our approach extends to a more general market setting, where the traders have utility functions from a wide family which includes CES utilities.

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Author information

Authors and Affiliations

  1. Department of Computer Science, The University of Iowa, Iowa City, IA, 52242, (USA)

    Bruno Codenotti & Kasturi Varadarajan

Authors
  1. Bruno Codenotti
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  2. Kasturi Varadarajan
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Editor information

Editors and Affiliations

  1. Departament de Llenguatges i Sistemes Informatics, Universitat Politecnica de Catalunya, Campus Nord - Ed. Omega, 240 Jordi Girona Salgado, 1-3 E-08034, Barcelona

    Josep Díaz

  2. Department of Mathematics and Turku Centre for Computer Science TUCS, University of Turku, 20014, Turku, Finland

    Juhani Karhumäki

  3. Department of Mathematics, University of Turku, Turku, Finland

    Arto Lepistö

  4. Laboratory for Foundations of Computer Science, University of Edinburgh,  

    Donald Sannella

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© 2004 Springer-Verlag Berlin Heidelberg

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Codenotti, B., Varadarajan, K. (2004). Efficient Computation of Equilibrium Prices for Markets with Leontief Utilities. In: Díaz, J., Karhumäki, J., Lepistö, A., Sannella, D. (eds) Automata, Languages and Programming. ICALP 2004. Lecture Notes in Computer Science, vol 3142. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-27836-8_33

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  • DOI: https://doi.org/10.1007/978-3-540-27836-8_33

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-22849-3

  • Online ISBN: 978-3-540-27836-8

  • eBook Packages: Springer Book Archive

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