Volume 51, Number 3, 357-366, DOI: 10.1007/s00453-007-9102-x

A Primal-Dual Algorithm for the Computation of Market Equilibrium with Logarithmic Utility Functions

Li-Sha Huang

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Abstract

We develop an algorithm for computing the equilibrium price in the Fisher’s exchange market model with logarithmic utility functions. The algorithm is proved to converge to the equilibrium price in finite time and performs well in experimental tests.

Keywords  Market equilibrium - Primal-dual algorithm

Supported by Natural Science Foundation of China (No.60135010,60321002) and the Chinese National Key Foundation Research and Development Plan (2004CB318108).

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