A rational convex program for linear Arrow-Debreu markets

Nikhil R. Devanur, Jugal Garg and László A. Végh

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We present a new flow-type convex program describing equilibrium solutions to linear Arrow-Debreu markets. Whereas convex formulations were previously known ([Nenakov and Primak 1983; Jain 2007; Cornet 1989]), our program exhibits several new features. It provides a simple necessary and sufficient condition and a concise proof of the existence and rationality of equilibria, settling an open question raised by Vazirani [2012]. As a consequence, we also obtain a simple new proof of the result in Mertens [2003] that the equilibrium prices form a convex polyhedral set.

Keywords: market equilibrium; linear exchange market; convex programming (search for similar items in EconPapers)
JEL-codes: J1 (search for similar items in EconPapers)
Date: 2016-11-03
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Citations: View citations in EconPapers (3)

Published in ACM Transactions on Economics and Computation, 3, November, 2016, 5(1), pp. 6. ISSN: 2167-8375

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