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Author Codenotti, Bruno ♦ Mccune, Benton ♦ Pemmaraju, Sriram ♦ Raman, Rajiv ♦ Varadarajan, Kasturi
Source ACM Digital Library
Content type Text
Publisher Association for Computing Machinery (ACM)
File Format PDF
Copyright Year ©2008
Language English
Subject Domain (in DDC) Computer science, information & general works ♦ Computer programming, programs & data
Subject Keyword Market equilibrium
Abstract Over the last few years, the problem of computing market equilibrium prices for exchange economies has received much attention in the theoretical computer science community. Such activity led to a flurry of polynomial time algorithms for various restricted, yet significant, settings. The most important restrictions arise either when the traders' utility functions satisfy a property known as gross substitutability or when the initial endowments are proportional (the Fisher model). In this paper, we experimentally compare the performance of some of these recent algorithms against that of the most used software packages. In particular, we evaluate the following approaches: (1) the solver PATH, available under GAMS/MPSGE, a popular tool for computing market equilibrium prices; (2) a discrete version of a simple iterative price update scheme called tâtonnement; (3) a discrete version of the welfare adjustment process; (4) convex feasibility programs that characterize the equilibrium in some special cases. We analyze the performance of these approaches on models of exchange economies where the consumers are equipped with utility functions, which are widely used in real world applications. The outcomes of our experiments consistently show that many market settings allow for an efficient computation of the equilibrium, well beyond the restrictions under which the theory provides polynomial time guarantees. For some of the approaches, we also identify models where they are are prone to failure.
ISSN 10846654
Age Range 18 to 22 years ♦ above 22 year
Educational Use Research
Education Level UG and PG
Learning Resource Type Article
Publisher Date 2008-08-01
Publisher Place New York
e-ISSN 10846654
Journal Journal of Experimental Algorithmics (JEA)
Volume Number 12
Page Count 21
Starting Page 1
Ending Page 21

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Source: ACM Digital Library