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Simplical Algorithm To Find Zero Points Of A Function With Special Structure On Simplotope

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  • KAMIYA, K.
  • TALMAN, A.J.J.

Abstract

In this paper we introduce a variable dimension simplicial algorithm on a cartesian product of unit simplices to find a zero point of a continuous function with special structure. The special structure of the function allows us to perform the linear programming pivot steps of the algorithm in a small system of equations. Moreover, a specific simplicial subdivision of the simplotope underlies the algorithm. The path of points generated by the algorithm approximately follows a piecewise smooth path in the simplotope. The latter path can be interpreted as being generated by an adjustment process. We discuss two applications, an international trade economy and an economy with increasing returns to scale. In both applications the zero points of the function induce equilibria in the economies.
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Suggested Citation

  • Kamiya, K. & Talman, A.J.J., 1989. "Simplical Algorithm To Find Zero Points Of A Function With Special Structure On Simplotope," Papers 8912, Tilburg - Center for Economic Research.
    • Handle: RePEc:fth:tilbur:8912
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    Keywords

    economic equilibrium ; linear programming;

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