Computational Management Science

, Volume 16, Issue 1–2, pp 3–16 | Cite as

Blocks of coordinates, stochastic programming, and markets

  • Sjur Didrik FlåmEmail author
Original Paper


Considered here are extremal convolutions concerned with allocative efficiency, risk sharing, or market equilibrium. Each additive term is upper semicontinuous, proper concave, maybe non-smooth, and possibly extended-valued. In a leading interpretation, each term, alongside its block of coordinates, is controlled by an independent economic agent. Vectors are construed as contingent claims or as bundles of commodities. These are diverse, divisible, and perfectly transferable. At every stage two randomly selected agents make bilateral direct exchanges. The amounts transferred between the two parties depend on the difference between their generalized gradients. The resulting process—and the associated convergence analysis—fits the frames of stochastic programming. Motivation stems from exchange markets.


Block-coordinate methods Convolution Projected gradients Stochastic programming Bilateral matching Market equilibrium 



Thanks for support are due the department and Røwdes Fond.


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Informatics DepartmentUniversity of BergenBergenNorway

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