On Equilibrium Pricing as Convex Optimization

On Equilibrium Pricing as Convex Optimization

Year:    2010

Journal of Computational Mathematics, Vol. 28 (2010), Iss. 5 : pp. 569–578

Abstract

We study competitive economy equilibrium computation. We show that, for the first time, the equilibrium sets of the following two markets: 1. A mixed Fisher and Arrow-Debreu market with homogeneous and log-concave utility functions; 2. The Fisher and Arrow-Debreu markets with several classes of concave non-homogeneous utility functions; are convex or log-convex. Furthermore, an equilibrium can be computed as convex optimization by an interior-point algorithm in polynomial time.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/jcm.1003-m0001

Journal of Computational Mathematics, Vol. 28 (2010), Iss. 5 : pp. 569–578

Published online:    2010-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    10

Keywords:    Convex optimization Competitive economy equilibrium Non-homogeneous utility.