Scarf's Method
Solves for a general equilibrium price vector to clear an n-good demand and supply system.
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This function computes a price vector that clears all markets in the demand and supply system specified by the user. The algorithm solves for approximations to equilibrium prices using a modification of Herbert Scarf's simplex algorithm proposed by James MacKinnon and Harold Kuhn. The function returns a 1xN price vector that sums to unity.
References:
* Harold W. Kuhn and James G. MacKinnon, 1975. The sandwich method
for finding fixed points. Journal of Optimization Theory and
Applications, 17, 189-204.
* Herbert E. Scarf, 1977. The computation of equilibrium prices:
An exposition. Handbook of Mathematical Economics, K. J. Arrow &
M.D. Intriligator (ed.), Handbook of Mathematical Economics,
edition 4, 2(21), 1007-1061.
* Andreu Mas-Colell, Michael D. Whinston and Jerry R. Green, 1990.
Part IV: General Equilibrium. Microeconomic Theory. Oxford
University Press, 511-786.
Cite As
Richard Katzwer (2026). Scarf's Method (https://se.mathworks.com/matlabcentral/fileexchange/48715-scarf-s-method), MATLAB Central File Exchange. Retrieved .
General Information
- Version 1.4.0.0 (3.83 KB)
MATLAB Release Compatibility
- Compatible with any release
Platform Compatibility
- Windows
- macOS
- Linux
| Version | Published | Release Notes | Action |
|---|---|---|---|
| 1.4.0.0 | Fixed bug with initial price vector guess. |
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| 1.3.0.0 | Cleaned up optional parameter passing. |
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| 1.2.0.0 | Updated documentation, variable output arguments. |
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| 1.1.0.0 | Updated method documentation, variable output arguments. |
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| 1.0.0.0 |
