Title: Proportional Response as Iterated Cobb-Douglas
Abstract: We show that the proportional response algorithm for computing an economic equilibrium in a Fisher market model can be interpreted as iteratively approximating the economy by one with Cobb-Douglas utilities, for which a closed-form equilibrium can be obtained. We also extend the method to allow elasticities of substitution at most one.
Publication Year: 2010
Publication Date: 2010-01-01
Language: en
Type: article
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