This article is cited in 1 paper

Linear-fractional exchange model. Part 2: Algorithm of meeting trajectories for the fixed budget model

V. I. Shmyrev<sup>ab

a</sup> S. L. Sobolev Institute of Mathematics, SB RAS, Novosibirsk, Russia
^b Novosibirsk State University, Novosibirsk, Russia

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.

UDC: 519.865.3

Received: 07.04.2009
Revised: 21.12.2009

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