Article

Market equilibrium via the excess demand function

Authors:

Bruno Codenotti,

Kasturi VaradarajanAuthors Info & Claims

STOC '05: Proceedings of the thirty-seventh annual ACM symposium on Theory of computing

Pages 74 - 83

https://doi.org/10.1145/1060590.1060601

Published: 22 May 2005 Publication History

Abstract

We consider the problem of computing market equilibria and show three results. (i) For exchange economies satisfying weak gross substitutability we analyze a simple discrete version of tâtonnement, and prove that it converges to an approximate equilibrium in polynomial time. This is the first polynomial-time approximation scheme based on a simple atonnement process. It was only recently shown, using vastly more sophisticated techniques, that an approximate equilibrium for this class of economies is computable in polynomial time. (ii) For Fisher's model, we extend the frontier of tractability by developing a polynomial-time algorithm that applies well beyond the homothetic case and the gross substitutes case. (iii) For production economies, we obtain the first polynomial-time algorithms for computing an approximate equilibrium when the consumers' side of the economy satisfies weak gross substitutability and the producers' side is restricted to positive production.

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Ramseyer GGoyal MGoel AMazières DKleinberg RSaban DBergemann D(2024)Augmenting Batch Exchanges with Constant Function Market MakersProceedings of the 25th ACM Conference on Economics and Computation10.1145/3670865.3673569(986-1016)Online publication date: 8-Jul-2024
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Index Terms

Market equilibrium via the excess demand function
1. Theory of computation
  1. Randomness, geometry and discrete structures
    1. Computational geometry

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cover image ACM Conferences

STOC '05: Proceedings of the thirty-seventh annual ACM symposium on Theory of computing

May 2005

778 pages

ISBN:1581139608

DOI:10.1145/1060590

General Chair:
Hal Gabow
University of Colorado
,
Program Chair:
Ronald Fagin
IBM Almaden Research Center

Copyright © 2005 ACM.

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Published: 22 May 2005

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May 22 - 24, 2005

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Overall Acceptance Rate 1,469 of 4,586 submissions, 32%

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Cited By

Branzei SMehta RNisan N(2025)Tit-for-tat strategies drive growth and inequality in production economiesProceedings of the Royal Society A: Mathematical, Physical and Engineering Sciences10.1098/rspa.2024.0533481:2306Online publication date: 22-Jan-2025
https://doi.org/10.1098/rspa.2024.0533
Ramseyer GGoyal MGoel AMazières DKleinberg RSaban DBergemann D(2024)Augmenting Batch Exchanges with Constant Function Market MakersProceedings of the 25th ACM Conference on Economics and Computation10.1145/3670865.3673569(986-1016)Online publication date: 8-Jul-2024
https://dl.acm.org/doi/10.1145/3670865.3673569
Cheng YDeng XLi YYan X(2024)Tight Incentive Analysis of Sybil Attacks against the Market Equilibrium of Resource Exchange over General NetworksGames and Economic Behavior10.1016/j.geb.2024.10.009Online publication date: Nov-2024
https://doi.org/10.1016/j.geb.2024.10.009
Garg JHusić EVégh L(2023)An Auction Algorithm for Market Equilibrium with Weak Gross Substitute DemandsACM Transactions on Economics and Computation10.1145/3624558Online publication date: 14-Sep-2023
https://dl.acm.org/doi/10.1145/3624558
Goktas DZhao JGreenwald ALeyton-Brown KSamuelson LHartline J(2023)Tâtonnement in Homothetic Fisher MarketsProceedings of the 24th ACM Conference on Economics and Computation10.1145/3580507.3597746(760-781)Online publication date: 9-Jul-2023
https://dl.acm.org/doi/10.1145/3580507.3597746
Chen ZCheng YDeng XQi QYan X(2022)Tight Bound on Incnetive Ratio for Sybil Attack in Resource Sharing SystemIEEE Transactions on Cloud Computing10.1109/TCC.2020.298476010:2(913-924)Online publication date: 1-Apr-2022
https://doi.org/10.1109/TCC.2020.2984760
Brânzei S(2021)Exchange marketsACM SIGecom Exchanges10.1145/3505156.350516119:2(37-45)Online publication date: 6-Dec-2021
https://dl.acm.org/doi/10.1145/3505156.3505161
Cheung YHoefer MNakhe PElkind EVeloso MAgmon NTaylor M(2019)Tracing Equilibrium in Dynamic Markets via Distributed AdaptationProceedings of the 18th International Conference on Autonomous Agents and MultiAgent Systems10.5555/3306127.3331825(1225-1233)Online publication date: 8-May-2019
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Bei XGarg JHoefer M(2019)Ascending-Price Algorithms for Unknown MarketsACM Transactions on Algorithms10.1145/331939415:3(1-33)Online publication date: 7-Jun-2019
https://dl.acm.org/doi/10.1145/3319394
Cheung YCole RDevanur N(2019)Tatonnement Beyond Gross Substitutes? Gradient Descent to the RescueGames and Economic Behavior10.1016/j.geb.2019.03.014Online publication date: Apr-2019
https://doi.org/10.1016/j.geb.2019.03.014
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