| Article ID: | iaor1989929 |
| Country: | Netherlands |
| Volume: | 8 |
| Issue: | 5 |
| Start Page Number: | 271 |
| End Page Number: | 277 |
| Publication Date: | Oct 1989 |
| Journal: | Operations Research Letters |
| Authors: | Fuller J. David, Wu Ju |
Convergence of the PIES algorithm for calculation of partial economic equilibrium is found to depend on the elasticity of supply in models having affine supply and demand functions of prices. The results are shown, by example, to aid in understanding the convergence behaviour of models with supply represented by a cost-minimizing, linear process supply submodel.