Market Mechanisms with Non-Price-Taking Agents

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.