Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: May, 2009, Volume 77, Issue 3

A Double‐Track Adjustment Process for Discrete Markets With Substitutes and Complements

https://doi.org/10.3982/ECTA6514
p. 933-952

Ning Sun, Zaifu Yang

We propose a new Walrasian tâtonnement process called a double‐track procedure for efficiently allocating multiple heterogeneous indivisible items in two distinct sets to many buyers who view items in the same set as substitutes but items across the two sets as complements. In each round of the process, a Walrasian auctioneer first announces the current prices for all items, buyers respond by reporting their demands at these prices, and then the auctioneer adjusts simultaneously the prices of items in one set upward but those of items in the other set downward. It is shown that this procedure converges globally to a Walrasian equilibrium in finitely many rounds.


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