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Related papers: The Second-Order T\^atonnement: Decentralized Inte…

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T\^atonnement is a simple, intuitive market process where prices are iteratively adjusted based on the difference between demand and supply. Many variants under different market assumptions have been studied and shown to converge to a…

Computer Science and Game Theory · Computer Science 2025-02-18 Tianlong Nan , Yuan Gao , Christian Kroer

Analyzing simple and natural price-adjustment processes that converge to a market equilibrium is a fundamental question in economics. Such an analysis may have implications in economic theory, computational economics, and distributed…

Computer Science and Game Theory · Computer Science 2015-04-21 Noa Avigdor-Elgrabli , Yuval Rabani , Gala Yadgar

This paper proposes an alternative to the classical price-adjustment mechanism (called "t\^{a}tonnement" after Walras) that is second-order in time. The proposed mechanism, an analogue to the damped harmonic oscillator, provides a dynamic…

General Finance · Quantitative Finance 2011-08-25 Eric Kemp-Benedict

In this paper, we initiate the study of t\^atonnement dynamics in markets with chores. T\^atonnement is a fundamental market dynamics, capturing how prices evolve when they are adjusted in proportion of their excess demand. While its…

Computer Science and Game Theory · Computer Science 2025-11-27 Bhaskar Ray Chaudhury , Christian Kroer , Ruta Mehta , Tianlong Nan

Competitive equilibrium is a central concept in economics with numerous applications beyond markets, such as scheduling, fair allocation of goods, or bandwidth distribution in networks. Computation of competitive equilibria has received a…

Computer Science and Game Theory · Computer Science 2018-04-24 Yun Kuen Cheung , Martin Hoefer , Paresh Nakhe

We propose and analyze several inexact regularized Newton-type methods for finding a global saddle point of convex-concave unconstrained min-max optimization problems. Compared to first-order methods, our understanding of second-order…

Optimization and Control · Mathematics 2026-05-27 Tianyi Lin , Panayotis Mertikopoulos , Michael I. Jordan

A prevalent theme in the economics and computation literature is to identify natural price-adjustment processes by which sellers and buyers in a market can discover equilibrium prices. An example of such a process is t\^atonnement, an…

Computer Science and Game Theory · Computer Science 2025-03-04 Denizalp Goktas , Jiayi Zhao , Amy Greenwald

A major goal in Algorithmic Game Theory is to justify equilibrium concepts from an algorithmic and complexity perspective. One appealing approach is to identify robust natural distributed algorithms that converge quickly to an equilibrium.…

Computer Science and Game Theory · Computer Science 2019-11-25 Richard Cole , Yixin Tao

In two previous papers the author developed a second-order price adjustment (t\^atonnement) process. This paper extends the approach to include both quantity and price adjustments. We demonstrate three results: a analogue to physical…

General Finance · Quantitative Finance 2012-04-17 Eric Kemp-Benedict

We present a decentralized message exchange process (tatonnement process) for determining the level at which a certain public good will be provided to a set of individuals who finance the cost of attaining that level. The message exchange…

Optimization and Control · Mathematics 2011-05-31 Ali Kakhbod , Joseph Koo , Demosthenis Teneketzis

The canonical price-adjustment process, t\^atonnement, typically fails to converge to the exact competitive equilibrium (CE) and requires a high iteration complexity of $\tilde{\mathcal{O}}(1/\epsilon)$ to compute $\epsilon$-CE prices in…

Optimization and Control · Mathematics 2025-10-10 He Chen , Chonghe Jiang , Anthony Man-Cho So

In this work, we study a generalized Fisher market model that incorporates social influence. In this extended model, a buyer's utility depends not only on their own resource allocation but also on the allocations received by their…

Computer Science and Game Theory · Computer Science 2025-01-14 Mandar Datar

Our main objective in this paper is to develop a second-order stochastic numerical method which generalizes the well-known deterministic TR-BDF2 scheme. Since most stochastic techniques used for approximating the solution of a stochastic…

Numerical Analysis · Mathematics 2026-02-12 Tomás Caraballo , Macarena Gómez-Mármol , Ignacio Roldán

We consider the problem of large-scale Fisher market equilibrium computation through scalable first-order optimization methods. It is well-known that market equilibria can be captured using structured convex programs such as the…

Computer Science and Game Theory · Computer Science 2023-03-02 Tianlong Nan , Yuan Gao , Christian Kroer

In this article we revisit the classic problem of tatonnement in price formation from a microstructure point of view, reviewing a recent body of theoretical and empirical work explaining how fluctuations in supply and demand are slowly…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Jean-Philippe Bouchaud , J. Doyne Farmer , Fabrizio Lillo

The supply function equilibrium (SFE) is a model for competition in markets where each firm offers a schedule of prices and quantities to face demand uncertainty, and has been successfully applied to wholesale electricity markets. However,…

Optimization and Control · Mathematics 2015-02-05 Sheng Yu , Enrique Campos-Nanez

This paper continues the study, initiated by Cole and Fleischer, of the behavior of a tatonnement price update rule in Ongoing Fisher Markets. The prior work showed fast convergence toward an equilibrium when the goods satisfied the weak…

Computer Science and Game Theory · Computer Science 2012-11-13 Yun Kuen Cheung , Richard Cole , Ashish Rastogi

This paper shows that in suitable markets, even with out-of-equilibrium trade allowed, a simple price update rule leads to rapid convergence toward the equilibrium. In particular, this paper considers a Fisher market repeated over an…

Computer Science and Game Theory · Computer Science 2010-12-13 Richard Cole , Lisa Fleischer , Ashish Rastogi

I characterize stochastic non-t\^atonnement processes (SNTP) and argue that they are a natural outcome of General Equilibrium Theory. To do so, I revisit the classical demand theory to define a normalized Walrasian demand and a…

Theoretical Economics · Economics 2025-09-23 Leandro Lyra Braga Dognini

This work proposes a universal and adaptive second-order method for minimizing second-order smooth, convex functions. Our algorithm achieves $O(\sigma / \sqrt{T})$ convergence when the oracle feedback is stochastic with variance $\sigma^2$,…

Optimization and Control · Mathematics 2022-12-13 Kimon Antonakopoulos , Ali Kavis , Volkan Cevher
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