Proportional Response as Iterated Cobb-Douglas

descriptionPublicationkeyboard_double_arrow_right Article , Conference object 01 Jan 2010Embargo end date: 15 Jul 2010 Germany English Publisher:Schloss Dagstuhl – Leibniz-Zentrum für Informatik

Authors: Todd, Michael J.;

doi: 10.4230/dagsemproc.10171.3

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.

Country

Germany

Related Organizations

Leibniz Association
Germany
Cornell University
United States
Schloss Dagstuhl – Leibniz Center for Informatics
Germany

Keywords

Cobb-Douglas utilities, Computing equilibria, 330, proportional response algorithm, Fisher market, 004, ddc: ddc:004

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