ID : 1015
Studies ; Optimization ; Market equilibrium  ; Management science ; Linear programming ; Economic models
The fact that precision requirements for solutions of most economic models in practice are moderate only is exploited.  A simple approach is introduced for solving linearly constrained partial equilibrium models based on an iterative scheme similar to the simplex method.  It allows large-scale models to be solved, within a practical tolerance, efficiently even in a microcomputer environment.  Extensions to linearly constrained convex optimization problems are presented.  Finally, a set of computational tests on 68 linear programs from the NETLIB library is reported.  Comparison of the approach with the simplex method (using MINOS 5.1) and with Karmarkar's (1984) algorithm is reported.  For moderate precision requirements these preliminary results are highly encouraging.
Tatonnement procedures for linearly constrained convex optimization, Kallio, Markku; Salo, Seppo, Management Science, 40:6, Jun 1994
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