License: Creative Commons Attribution 4.0 International license (CC BY 4.0)
When quoting this document, please refer to the following
DOI: 10.4230/DagSemProc.10171.3
URN: urn:nbn:de:0030-drops-26713
URL: http://dagstuhl.sunsite.rwth-aachen.de/volltexte/2010/2671/
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Todd, Michael J.

Proportional Response as Iterated Cobb-Douglas

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10171.ToddMichael.Paper.2671.pdf (0.2 MB)

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: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/opus/volltexte/2010/2671},
  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}
}

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

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