Economic Exchange Equilibrium

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Direct download AIMMS Project Economic Exchange Equilibrium.zip

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