In proposing an open problem, Codenotti et al.[3, 5] conjectured that the
welfare adjustment scheme
can approximate the general market equilibrium by iteratively using an oracle for the Fisher’s model. In this work, we analyze the scheme for a large class of market models. We show that the iterative step is in fact a Lipschitz continuous function and the residue approximation of its fixed point is a good approximation of the market equilibrium price.