Multiplicative resource-price dynamics

ID: multiplicative-resource-price-dynamics

For route prices , logarithmic users demand , while resource prices adjust as
This model raises prices under excess demand and lowers them under spare capacity. Positive capacities and nonempty routes are standard well-definedness assumptions. Positive initial prices approach the dual optimum; zero prices are invariant and can create boundary equilibria of multiplicative price dynamics that overload a resource.

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