Tatonnement in ongoing markets of complementary goods

Yun Kuen Cheung, Richard Cole, Ashish Rastogi

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper continues the study, initiated by Cole and Fleischer in [Cole and Fleischer 2008], 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 gross substitutes property and had bounded demand and income elasticities. The current work shows that fast convergence also occurs for the following type of markets: All pairs of goods are complements to each other, and the demand and income elasticities are suitably bounded. In particular, these conditions hold when all buyers in the market are equipped with CES utilities, where all the parameters ρ, one per buyer, satisfy -1 < ρ ≤ 0. In addition, we extend the above result to markets in which a mixture of complements and substitutes occur. This includes characterizing a class of nested CES utilities for which fast convergence holds. An interesting technical contribution, which may be of independent interest, is an amortized analysis for handling asynchronous events in settings in which there are a mix of continuous changes and discrete events.

Original languageEnglish (US)
Title of host publicationEC '12 - Proceedings of the 13th ACM Conference on Electronic Commerce
Pages337-354
Number of pages18
DOIs
StatePublished - Jul 10 2012
Event13th ACM Conference on Electronic Commerce, EC '12 - Valencia, Spain
Duration: Jun 4 2012Jun 8 2012

Publication series

NameProceedings of the ACM Conference on Electronic Commerce

Other

Other13th ACM Conference on Electronic Commerce, EC '12
CountrySpain
CityValencia
Period6/4/126/8/12

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Keywords

  • amortized analysis
  • ongoing fisher market
  • tatonnement

ASJC Scopus subject areas

  • Software
  • Computer Science Applications
  • Computer Networks and Communications

Cite this

Cheung, Y. K., Cole, R., & Rastogi, A. (2012). Tatonnement in ongoing markets of complementary goods. In EC '12 - Proceedings of the 13th ACM Conference on Electronic Commerce (pp. 337-354). (Proceedings of the ACM Conference on Electronic Commerce). https://doi.org/10.1145/2229012.2229039