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URN: urn:nbn:de:0030-drops-26713
URL: http://drops.dagstuhl.de/opus/volltexte/2010/2671/
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Todd, Michael J.

Proportional Response as Iterated Cobb-Douglas

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Abstract

We show that the proportional response algorithm for computing an economic equilibrium in a Fisher market model can be interpreted as iteratively approximating the economy by one with Cobb-Douglas utilities, for which a closed-form equilibrium can be obtained. We also extend the method to allow elasticities of substitution at most one.

BibTeX - Entry

@InProceedings{todd:DSP:2010:2671,
  author =	{Michael J. Todd},
  title =	{Proportional Response as Iterated Cobb-Douglas},
  booktitle =	{Equilibrium Computation},
  year =	{2010},
  editor =	{Edith Elkind and Nimrod Megiddo and Peter Bro Miltersen and Vijay V. Vazirani and Bernahrd von Stengel},
  number =	{10171},
  series =	{Dagstuhl Seminar Proceedings},
  ISSN =	{1862-4405},
  publisher =	{Schloss Dagstuhl - Leibniz-Zentrum fuer Informatik, Germany},
  address =	{Dagstuhl, Germany},
  URL =		{http://drops.dagstuhl.de/opus/volltexte/2010/2671},
  annote =	{Keywords: Computing equilibria, Fisher market, proportional response algorithm, Cobb-Douglas utilities}
}

Keywords: Computing equilibria, Fisher market, proportional response algorithm, Cobb-Douglas utilities
Seminar: 10171 - Equilibrium Computation
Issue Date: 2010
Date of publication: 15.07.2010


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