Market equilibrium using auctions for a class of gross-substitute utilities

  • Authors:
  • Rahul Garg;Sanjiv Kapoor

  • Affiliations:
  • IBM T.J. Watson Research Center;Illinois Institute of Technology, Chicago

  • Venue:
  • WINE'07 Proceedings of the 3rd international conference on Internet and network economics
  • Year:
  • 2007

Quantified Score

Hi-index 0.00

Visualization

Abstract

In addition to useful Economic interpretation, auction based algorithms are generally found to be efficient. In this note, we observe that the auction-based mechanism can also be used to efficiently compute market equilibrium for a large class of utility functions satisfying gross substitutability, including a range of CES (constant elasticity of substitution) and Cobb-Douglas functions.