Non-separable, Quasiconcave Utilities are Easy – in a Perfect Price Discrimination Market Model (Extended Abstract)
- Vijay V. VaziraniAffiliated withGeorgia Institute of Technology
Recent results, establishing evidence of intractability for such restrictive utility functions as additively separable, piecewise-linear and concave, under both Fisher and Arrow-Debreu market models, have prompted the question of whether we have failed to capture some essential elements of real markets, which seem to do a good job of finding prices that maintain parity between supply and demand.
The main point of this paper is to show that even non-separable, quasiconcave utility functions can be handled efficiently in a suitably chosen, though natural, realistic and useful, market model; our model allows for perfect price discrimination. Our model supports unique equilibrium prices and, for the restriction to concave utilities, satisfies both welfare theorems.
- Non-separable, Quasiconcave Utilities are Easy – in a Perfect Price Discrimination Market Model (Extended Abstract)
- Book Title
- Internet and Network Economics
- Book Subtitle
- 6th International Workshop, WINE 2010, Stanford, CA, USA, December 13-17, 2010. Proceedings
- pp 563-570
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- Online ISBN
- Series Title
- Lecture Notes in Computer Science
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- Springer Berlin Heidelberg
- Copyright Holder
- Springer-Verlag Berlin Heidelberg
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