The Nonlinear Bernstein-Schrödinger Equation in Economics.

Summary In this paper we relate the Equilibrium Assignment Problem (EAP), which is underlying in several economics models, to a system of nonlinear equations that we call the “nonlinear Bernstein-Schrodinger system”, which is well-known in the linear case, but whose nonlinear extension does not seem to have been studied. We apply this connection to derive an existence result for the EAP, and an efficient computational method.