Market‐based Approaches to Optimization

We present a general discussion of what constitutes a market‐oriented approach to optimization. We demonstrate how a general framework can be used to conceptually improve two well‐known approaches from the literature, and discuss computational properties of the different approaches. We also show how existing theory could be adjusted to be directly applicable to the theory of the two approaches, thus proving special theory unnecessary. We want to bring out the pedagogical aspects of market mechanisms, to take full advantage of its potential.