Keywords and Synonyms
Competitive market equilibrium
Problem Definition
This problem is concerned with the computational complexity of finding an exchange market equilibrium. The exchange market model consists of a set of agents, each with an initial endowment of commodities, interacting through a market, trying to maximize each's utility function. The equilibrium prices are determined by a clearance condition. That is, all commodities are bought, collectively, by all the utility maximizing agents, subject to their budget constraints (determined by the values of their initial endowments of commodities at the market price). The work of Deng, Papadimitriou and Safra [3] studies the complexity, approximability, inapproximability, and communication complexity of finding equilibrium prices. The work shows the NP-hardness of approximating the equilibrium in a market with indivisible goods. For markets with divisible goods and linear utility functions, it develops a pseudo-polynomial time...
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Recommended Reading
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© 2008 Springer-Verlag
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Huang, LS. (2008). General Equilibrium. In: Kao, MY. (eds) Encyclopedia of Algorithms. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-30162-4_160
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DOI: https://doi.org/10.1007/978-0-387-30162-4_160
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