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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Codenotti, B., Varadarajan, K. (2004). Efficient Computation of Equilibrium Prices for Markets with Leontief Utilities. In: DÃaz, 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
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