research-article

An experimental study of different approaches to solve the market equilibrium problem

Authors:

Bruno Codenotti,

Sriram Pemmaraju,

Kasturi VaradarajanAuthors Info & Claims

Journal of Experimental Algorithmics (JEA), Volume 12

Article No.: 3.3, Pages 1 - 21

https://doi.org/10.1145/1227161.1402295

Published: 29 August 2008 Publication History

Abstract

Over the last few years, the problem of computing market equilibrium prices for exchange economies has received much attention in the theoretical computer science community. Such activity led to a flurry of polynomial time algorithms for various restricted, yet significant, settings. The most important restrictions arise either when the traders' utility functions satisfy a property known as gross substitutability or when the initial endowments are proportional (the Fisher model). In this paper, we experimentally compare the performance of some of these recent algorithms against that of the most used software packages. In particular, we evaluate the following approaches: (1) the solver PATH, available under GAMS/MPSGE, a popular tool for computing market equilibrium prices; (2) a discrete version of a simple iterative price update scheme called tâtonnement; (3) a discrete version of the welfare adjustment process; (4) convex feasibility programs that characterize the equilibrium in some special cases. We analyze the performance of these approaches on models of exchange economies where the consumers are equipped with utility functions, which are widely used in real world applications. The outcomes of our experiments consistently show that many market settings allow for an efficient computation of the equilibrium, well beyond the restrictions under which the theory provides polynomial time guarantees. For some of the approaches, we also identify models where they are are prone to failure.

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Cited By

Prasad AArumaithurai MKoll DJiang YFu X(2019)OFM: An Online Fisher Market for Cloud ComputingIEEE INFOCOM 2019 - IEEE Conference on Computer Communications10.1109/INFOCOM.2019.8737641(2575-2583)Online publication date: 29-Apr-2019
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An experimental study of different approaches to solve the market equilibrium problem

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cover image ACM Journal of Experimental Algorithmics

ACM Journal of Experimental Algorithmics Volume 12, Issue

2008

507 pages

ISSN:1084-6654

EISSN:1084-6654

DOI:10.1145/1227161

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Copyright © 2008 ACM.

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Publication History

Published: 29 August 2008

Accepted: 01 May 2007

Revised: 01 December 2006

Received: 01 November 2005

Published in JEA Volume 12

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Market equilibrium

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Cited By

Prasad AArumaithurai MKoll DJiang YFu X(2019)OFM: An Online Fisher Market for Cloud ComputingIEEE INFOCOM 2019 - IEEE Conference on Computer Communications10.1109/INFOCOM.2019.8737641(2575-2583)Online publication date: 29-Apr-2019
https://dl.acm.org/doi/10.1109/INFOCOM.2019.8737641
Prasad AArumaithurai MKoll DFu X(2019)DMC: A Differential Marketplace for Cloud Resources2019 19th IEEE/ACM International Symposium on Cluster, Cloud and Grid Computing (CCGRID)10.1109/CCGRID.2019.00034(198-209)Online publication date: May-2019
https://doi.org/10.1109/CCGRID.2019.00034
Pantoja AObando GQuijano N(2019)Distributed optimization with information-constrained population dynamicsJournal of the Franklin Institute10.1016/j.jfranklin.2018.10.016356:1(209-236)Online publication date: Jan-2019
https://doi.org/10.1016/j.jfranklin.2018.10.016
Fleischer LGarg RKapoor SKhandekar RSaberi A(2016)A Simple and Efficient Algorithm for Computing Market EquilibriaACM Transactions on Algorithms10.1145/290537212:3(1-15)Online publication date: 13-May-2016
https://dl.acm.org/doi/10.1145/2905372
Gomes EVo QKowalczyk R(2012)Pure exchange markets for resource sharing in federated cloudsConcurrency and Computation: Practice & Experience10.1002/cpe.165924:9(977-991)Online publication date: 1-Jun-2012
https://dl.acm.org/doi/10.1002/cpe.1659

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