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In the case of indivisible item assignment, when the utility functions of all agents are GS (and thus an equilibrium exists), it is possible to find a competitive equilibrium using an ascending auction. In an ascending auction, the auctioneer publishes a price vector, initially zero, and the buyers declare their favorite bundle under these prices.
A competitive equilibrium is a price vector and an allocation in which the demands of all agents are satisfied (the demand of each good equals its supply). In a linear economy, it consists of a price vector and an allocation , giving each agent a bundle such that:
If we equate quantity supplied with quantity demanded to find the equilibrium price , we find that P e q b = a − c g − b . {\displaystyle P^{eqb}={\frac {a-c}{g-b}}.} This means that the equilibrium price depends positively on the demand intercept if g – b > 0, but depends negatively on it if g – b < 0.
A-CEEI (and CEEI in general) is related, but not identical, to the concept of competitive equilibrium. Competitive equilibrium (CE) is a descriptive concept: it describes the situation in free market when the price stabilizes and the demand equals the supply. CEEI is a normative concept: it describes a rule for dividing commodities between people.
In most simple microeconomic stories of supply and demand a static equilibrium is observed in a market; however, economic equilibrium can be also dynamic. Equilibrium may also be economy-wide or general, as opposed to the partial equilibrium of a single market. Equilibrium can change if there is a change in demand or supply conditions.
At a glance: ARM vs. fixed-rate mortgage. Adjustable-rate mortgage. Fixed-rate mortgage. Down payment. Typically 3.5% to 20%. Typically 3% to 20%. Initial interest rate. May be lower or higher for ...
Market equilibrium computation (also called competitive equilibrium computation or clearing-prices computation) is a computational problem in the intersection of economics and computer science. The input to this problem is a market , consisting of a set of resources and a set of agents .
Editor's note: Annual percentage yields shown are as of February 6, 2025, at 8:10 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change. Sources ...