Multiplicative resource-price dynamics
ID: multiplicative-resource-price-dynamics
For route prices , logarithmic users demand , while resource prices adjust asThis 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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