2010/01/01 by Michael J. Todd, Todd, Michael J.
Economics, Econometrics and Finance · #Cobb-Douglas utilities #Computing equilibria #Economic theories and models #Fisher market #proportional response algorithm
paper · doi:10.4230/dagsemproc.10171.3
openalex publication_date 2010/01/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
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.