Market equilibria with hybrid linear-Leontief utilities

We introduce a new family of utility functions for exchange markets. This family provides a natural and “continuous” hybridization of the traditional linear and Leontief utilities and might be useful in understanding the complexity of computing approximating market equilibria, although computing an equilibrium in a market with this family of utility functions, this is PPAD-hard in general. In this paper, we present an algorithm for finding an approximate Arrow–Debreu equilibrium when the Leontief components of the market are grouped, finite and well-conditioned.