On Convergence of the Sequential Joint Maximization Method for Applied Equilibrium Problems
Yu. M. Ermoliev, Gerald W. Fischer, Владимир Игоревич Норкин · IIASA PURE (International Institute of Applied Systems Analysis) · 1996
The convergence of the sequential joint maximization method (Rutherford [10]) for searching economic equilibria is studied in the case of Cobb-Douglas utility functions.It is shown that convergence is closely related to the behavior of certain inhomogeneous Markov chains.In particular, convergence takes place if each good is either produced or available in the economy.