TY - GEN
T1 - The Fisher market game
T2 - 28th AAAI Conference on Artificial Intelligence, AAAI 2014, 26th Innovative Applications of Artificial Intelligence Conference, IAAI 2014 and the 5th Symposium on Educational Advances in Artificial Intelligence, EAAI 2014
AU - Brânzei, Simina
AU - Filos-Ratsikas, Aris
AU - Chen, Yiling
AU - Deng, Xiaotie
AU - Frederiksen, Søren Kristoffer Stiil
AU - Zhang, Jie
PY - 2014/7/31
Y1 - 2014/7/31
N2 - The Fisher market model is one of the most fundamental resource allocation models in economics. In a Fisher market, the prices and allocations of goods are determined according to the preferences and budgets of buyers to clear the market.In a Fisher market game, however, buyers are strategic and report their preferences over goods; the market-clearing prices and allocations are then determined based on their reported preferences rather than their real preferences. Wc show that the Fisher market game always has a pure Nash equilibrium, for buyers with linear, Leontief, and Cobb-Douglas utility functions, which are three representative classes of utility functions in the important Constant Elasticity of Substitution (CES) family. Furthermore, to quantify the social efficiency, we prove Price of Anarchy bounds for the game when the utility functions of buyers fall into these three classes respectively.
AB - The Fisher market model is one of the most fundamental resource allocation models in economics. In a Fisher market, the prices and allocations of goods are determined according to the preferences and budgets of buyers to clear the market.In a Fisher market game, however, buyers are strategic and report their preferences over goods; the market-clearing prices and allocations are then determined based on their reported preferences rather than their real preferences. Wc show that the Fisher market game always has a pure Nash equilibrium, for buyers with linear, Leontief, and Cobb-Douglas utility functions, which are three representative classes of utility functions in the important Constant Elasticity of Substitution (CES) family. Furthermore, to quantify the social efficiency, we prove Price of Anarchy bounds for the game when the utility functions of buyers fall into these three classes respectively.
UR - http://www.scopus.com/inward/record.url?scp=84908214957&partnerID=8YFLogxK
M3 - Chapter in a published conference proceeding
AN - SCOPUS:84908214957
T3 - Proceedings of the National Conference on Artificial Intelligence
SP - 587
EP - 593
BT - Proceedings of the 28th AAAI Conference on Artificial Intelligence and the 26th Innovative Applications of Artificial Intelligence Conference and the 5th Symposium on Educational Advances in Artificial Intelligence
PB - AI Access Foundation
Y2 - 27 July 2014 through 31 July 2014
ER -