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Proportional Response as Iterated Cobb-Douglas

Authors: Michael J. Todd

Published in: Dagstuhl Seminar Proceedings, Volume 10171, Equilibrium Computation (2010)

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.

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Michael J. Todd. Proportional Response as Iterated Cobb-Douglas. In Equilibrium Computation. Dagstuhl Seminar Proceedings, Volume 10171, pp. 1-6, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2010)

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@InProceedings{todd:DagSemProc.10171.3,
  author =	{Todd, Michael J.},
  title =	{{Proportional Response as Iterated Cobb-Douglas}},
  booktitle =	{Equilibrium Computation},
  pages =	{1--6},
  series =	{Dagstuhl Seminar Proceedings (DagSemProc)},
  ISSN =	{1862-4405},
  year =	{2010},
  volume =	{10171},
  editor =	{Edith Elkind and Nimrod Megiddo and Peter Bro Miltersen and Vijay V. Vazirani and Bernahrd von Stengel},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/DagSemProc.10171.3},
  URN =		{urn:nbn:de:0030-drops-26713},
  doi =		{10.4230/DagSemProc.10171.3},
  annote =	{Keywords: Computing equilibria, Fisher market, proportional response algorithm, Cobb-Douglas utilities}
}

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Documents authored by Todd, Michael J.

Proportional Response as Iterated Cobb-Douglas

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