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Market Mechanisms with Non-Price-Taking Agents

2011/08/12 by Ali Kakhbod, Kakhbod, Ali
Business, Management and Accounting · Decision Sciences · Economics, Econometrics and Finance · #Digital Platforms and Economics #Economic theories and models #FOS: Electrical engineering #FOS: Mathematics #Game Theory and Applications #Optimization and Control (math.OC) #Systems and Control (eess.SY) #electronic engineering #information engineering

paper · pdf · doi:10.48550/arxiv.1108.2728

openalex publication_date 2011/08/12 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

The paper develops a decentralized resource allocation mechanism for allocating divisible goods with capacity constraints to non-price-taking agents with general concave utilities. The proposed mechanism is always budget balanced, individually rational, and it converges to an optimal solution of the corresponding centralized problem. Such a mechanism is very useful in a network with general topology and no auctioneer where the competitive agents/users want different type of services.

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