A Note on Exchange Market Equilibria with Leontief’s Utility: Freedom of Pricing Leads to Rationality
We extend the analysis of [27] to handling more general utility functions: piece-wise linear functions, which include Leontief’s utility. We show that the problem reduces to the general analytic center model discussed in [27]. Thus, the same linear programming complexity bound applies to approximating the Fisher equilibrium problem with these utilities. More importantly, we show … Read more