The spending constraint model for market equilibrium: algorithmic, existence and uniqueness results

  • Authors:
  • Nikhil R. Devanur

  • Affiliations:
  • Georgia Institute of Technology, Atlanta, GA

  • Venue:
  • STOC '04 Proceedings of the thirty-sixth annual ACM symposium on Theory of computing
  • Year:
  • 2004

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Abstract

The traditional model of market equilibrium supports impressive existence results, including the celebrated Arrow-Debreu Theorem. However, in this model, polynomial time algorithms for computing (or approximating) equilibria are known only for linear utility functions. We present a new, and natural, model of market equilibrium that not only admits existence and uniqueness results paralleling those for the traditional model but is also amenable to efficient algorithms.