A simplex-like algorithm for linear Fisher markets

Bharat Adsul, Ch Sobhan Babu, Jugal Garg, Ruta Mehta, Milind Sohoni

Research output: Contribution to journalArticlepeer-review


We propose a new convex optimization formulation for the Fisher market problem with linear utilities. Like the Eisenberg–Gale formulation, the set of feasible points is a polyhedral convex set while the cost function is nonlinear; however, the optimum is always attained at a vertex of this polytope. The convex cost function depends only on the initial endowments of the buyers. This formulation yields an easy, simplex-like algorithm which is provably strongly polynomial for many special cases. The algorithm can also be interpreted as a complementary pivot algorithm resembling the classical Lemke–Howson algorithm for computing Nash equilibrium of two-person bimatrix games.

Original languageEnglish (US)
Pages (from-to)1033-1042
Number of pages10
JournalCurrent Science
Issue number9
StatePublished - Nov 10 2012
Externally publishedYes


  • Convex optimization
  • Fisher market model
  • Market equilibrium
  • Simplex-like algorithm

ASJC Scopus subject areas

  • General


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