On Iterative Methods for Searching Equilibrium in Pure Exchange Economy with Multiplicative Utilities of Its Agents

  • Leonid D. PopovEmail author
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 12095)


We consider the classical Arrow–Debreu model for a pure exchange economy with multiplicative utilities of its agents. To calculate its equilibrium prices, we present a new iterative algorithm that simulates the simplest intuitive forms of the economic behavior of market agents. It converges under very weak assumptions. The algorithm relies on increasing prices for scarce products only. Moderate inflation, accompanying the computational process, plays a positive role in establishing an equilibrium between commodity supply and demand. Schemes have a meaningful economic interpretation. The convergence theorems are proved, and the results of numerical experiments are presented, including other types of economies.


Arrow–Debreu model Cobb–Douglas utility Economic equilibrium Tåtonnement 


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© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Krasovskii Institute of Mathematics and Mechanics UB RASYekaterinburgRussia
  2. 2.Ural Federal UniversityYekaterinburgRussia

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