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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

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

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

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

In this paper, we bring consumer theory to bear in the analysis of Fisher markets whose buyers have arbitrary continuous, concave, homogeneous (CCH) utility functions representing locally non-satiated preferences. The main tools we use are…

Computer Science and Game Theory · Computer Science 2022-01-06 Denizalp Goktas , Enrique Areyan Viqueira , Amy Greenwald

We extend a recently developed framework for analyzing asynchronous coordinate descent algorithms to show that an asynchronous version of tatonnement, a fundamental price dynamic widely studied in general equilibrium theory, converges…

Computer Science and Game Theory · Computer Science 2018-06-29 Yun Kuen Cheung , Richard Cole

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

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

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

The t\^atonnement process and Smale's process are two classical approaches to compute market equilibrium in exchange economies. While the t\^atonnement process can be seen as a first-order method, Smale's process, being second-order, is…

Optimization and Control · Mathematics 2025-09-30 Chuwen Zhang , Chang He , Bo Jiang , Yinyu Ye

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

This paper concerns asynchrony in iterative processes, focusing on gradient descent and tatonnement, a fundamental price dynamic. Gradient descent is an important class of iterative algorithms for minimizing convex functions. Classically,…

Optimization and Control · Mathematics 2016-12-30 Yun Kuen Cheung , Richard Cole

Dynamic pricing of goods in a competitive environment to maximize revenue is a natural objective and has been a subject of research over the years. In this paper, we focus on a class of markets exhibiting the substitutes property with…

Machine Learning · Computer Science 2017-09-18 Paresh Nakhe

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

Computer Science and Game Theory · Computer Science 2018-06-14 Yun Kuen Cheung , Richard Cole , Yixin Tao

We study the Proportional Response dynamic in exchange economies, where each player starts with some amount of money and a good. Every day, the players bring one unit of their good and submit bids on goods they like, each good gets…

Computer Science and Game Theory · Computer Science 2023-09-13 Simina Brânzei , Nikhil R. Devanur , Yuval Rabani

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 study Walrasian economies (or general equilibrium models) and their solution concept, the Walrasian equilibrium. A key challenge in this domain is identifying price-adjustment processes that converge to equilibrium. One such process,…

Computer Science and Game Theory · Computer Science 2025-02-24 Denizalp Goktas , Amy Greenwald

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

Proportional response is a well-established distributed algorithm which has been shown to converge to competitive equilibria in both Fisher and Arrow-Debreu markets, for various sub-families of homogeneous utilities, including linear and…

Computer Science and Game Theory · Computer Science 2025-06-04 Yun Kuen Cheung , Richard Cole , Yixin Tao

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
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