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Published in:
2006 | OriginalPaper | Chapter
Market Equilibria with Hybrid Linear-Leontief Utilities
Authors : Xi Chen, Li-Sha Huang, Shang-Hua Teng
Published in: Internet and Network Economics
Publisher: Springer Berlin Heidelberg
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We introduce a new family of utility functions for exchange markets. This family provides a natural and “continuous” hybridization of the traditional linear and Leontief utilities and might be useful in understanding the complexity of computing and approximating market equilibria. Because this family of utility functions contains Leontief utility functions as special cases, finding approximate Arrow-Debreu equilibria with hybrid linear-Leontief utilities is
PPAD
-hard in general. In contrast, we show that, when the Leontief components are grouped, finite and well-conditioned, we can efficiently compute an approximate Arrow-Debreu equilibrium.