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Book ChapterDOI

Computing equilibrium prices: does theory meet practice?

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This paper experimentally explores the gray zone between the general problem and the poly-time solvable special cases, and analyzes the performance of some simple algorithms, for inputs which are relevant in practice, and where the theory does not providepoly-time guarantees.
Abstract
The best known algorithms for the computation of market equilibria, in a general setting, are not guaranteed to run in polynomial time. On the other hand, simple poly-time algorithms are available for various restricted – yet important – markets. In this paper, we experimentally explore the gray zone between the general problem and the poly-time solvable special cases. More precisely, we analyze the performance of some simple algorithms, for inputs which are relevant in practice, and where the theory does not provide poly-time guarantees.

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Citations
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Book ChapterDOI

A Fast and Simple Algorithm for Computing Market Equilibria

TL;DR: Many economies including many economies including Homogeneous utilities of degreeα ∈ [0,1] in Fisher economies — this includes Linear, Leontief, Cobb-Douglas Resource allocation utilities like multi-commodityflows satisfy this condition and can be efficiently solved.

An Experimental Study of Different Approaches to Solve the Market Equilibrium Problem.

TL;DR: The outcomes of the experiments consistently show that many market settings allow for an efficient computation of the equilibrium, well beyond the restrictions under which the theory provides polynomial time guarantees.
Journal ArticleDOI

An experimental study of different approaches to solve the market equilibrium problem

TL;DR: In this article, the authors compare the performance of several polynomial time algorithms for various restricted, yet significant, settings, such as gross substitutability and the Fisher model.
Book ChapterDOI

Computing equilibrium prices in exchange economies with tax distortions

TL;DR: In this article, the authors consider the computation of equilibrium prices in market settings where purchases of goods are subject to taxation and analyze the effects of these distortions on scenarios which, in the absence of taxes, admit polynomial time algorithms.
Journal ArticleDOI

A Simple and Efficient Algorithm for Computing Market Equilibria

TL;DR: It is illustrated that many economies, including: —Homogeneous utilities of degree α ∈ [0, 1] in Fisher economies—this includes Linear, Leontief, Cobb-Douglas —Resource allocation utilities like multi-commodity flows satisfy this condition and can be efficiently solved.
References
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Book ChapterDOI

Existence of an equilibrium for a competitive economy

Kenneth J. Arrow, +1 more
- 01 Jul 1954 - 
TL;DR: In this article, a simplification of the structure of the proofs has been made possible through use of the concept of an abstract economy, a generalization of that of a game, and proofs of the existence of an equilibrium are given for an integrated model of production, exchange and consumption.
Journal ArticleDOI

GAMS, a user's guide

TL;DR: JuMP is an open-source modeling language that allows users to express a wide range of ideas in an easy-to-use manner.
Journal ArticleDOI

Capital-labor substitution and economic efficiency

TL;DR: In this article, the authors proposed a method to improve the quality of the service provided by the service provider by using the information of the user's interaction with the provider and the provider.
Book

Solutions manual for Microeconomic theory : Mas-Colell, Whinston and Green

TL;DR: A Solutions Manual, containing solutions to all end-of chapter questions for MICROECONOMic Theory by Mas-Colell, Whinston and Green, is released.
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