Economic Exchange Equilibrium

Economic Exchange Equilibrium

This example models an economic exchange of a number of goods between a number of agents.

Each agent initially owns an amount of each good, called the Endowment. The Utility function of each agent depends on:

  • Gamma, which determines the elasticity of demand for a good
  • UtilityWeight, which determines the relative weight of each good

The model computes the general equilibrium:

  • Consumption (or allocation) of each good for each agent
  • Prices at which the goods are traded
  • Lambda, the marginal utility of wealth for each agent

Keywords

Utility Function, Equilibrium, Duality, Nonlinear System. 

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