Volume 17, No 2, 2010, P. 79-96

UDC 519.865.3
V. I. Shmyrev
Linear-fractional exchange model. Part 2: Algorithm of meeting trajectories for the fixed budget model

Abstract:
In the paper we consider an exchange model with linear-fractional utility functions of consumers. For the fixed budget exchange model an algorithm is proposed, which uses a polyhedral complementarity approach. This approach was developed earlier by author for linear models. Under very weak non-degeneracy assumption on the initial state, we prove that the proposed algorithm yields an equilibrium in finite steps.
Bibl. 18.

Keywords: exchange model, linear-fractional function, utility function, economic equilibrium, price vector, mapping, fixed point, algorithm, polyhedral complementarity.

Shmyrev Vadim Ivanovich ^1,2
1. S. L. Sobolev Institute of Mathematics, SB RAS,
4 Acad. Koptyug Ave., 630090 Novosibirsk, Russia
2. Novosibirsk State University,
2 Pirogov St., 630090 Novosibirsk, Russia
e-mail: shmyrev@math.nsc.ru