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Tatonnement beyond gross substitutes? Gradient descent to the rescue

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  • Cheung, Yun Kuen
  • Cole, Richard
  • Devanur, Nikhil R.

Abstract

We identify a class of economies for which tatonnement is equivalent to gradient descent. This is the class of economies for which there is a convex potential function whose gradient is always equal to the negative of the excess demand. Among other consequences, we show that a discrete version of tatonnement converges to the equilibrium for the following economies of complementary goods.

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  • Cheung, Yun Kuen & Cole, Richard & Devanur, Nikhil R., 2020. "Tatonnement beyond gross substitutes? Gradient descent to the rescue," Games and Economic Behavior, Elsevier, vol. 123(C), pages 295-326.
    • Handle: RePEc:eee:gamebe:v:123:y:2020:i:c:p:295-326
    DOI: 10.1016/j.geb.2019.03.014
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    5. Yun Kuen Cheung & Stefanos Leonardos & Georgios Piliouras & Shyam Sridhar, 2021. "From Griefing to Stability in Blockchain Mining Economies," Papers 2106.12332, arXiv.org.

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    More about this item

    Keywords

    Market; Equilibria; Gradient descent; Tatonnement;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium

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