Advertisement

Spatial Price Equilibrium: Advances in Theory, Computation and Application

Papers Presented at the Thirty-First North American Regional Science Association Meeting Held at Denver, Colorado, USA November 1984

  • Patrick T. Harker
Conference proceedings

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 249)

About these proceedings

Introduction

The problem of predicting interregional commodity movements and the regional prices of these commodities has intrigued economists, geographers and operations researchers for years. In 1838, A. A. Cournot (1838) discussed the equilibrium of trade between New York and Paris and noted how the equilibrium prices depended upon the transport costs. Enke (1951) recognized that this problem of predicting interregional flows and regional prices could be formulated as a network problem, and in 1952, . Paul Samuelson (1952) used the then recent advances in mathe­ matical programming to formalize the spatial price equilibrium problem as a nonlinear optimization problem. From this formula­ tion, Takayama and Judge (1964) derived their quadratic program­ ming representation of the spatial price equilibrium problem, which they and other scholars then applied to a wide variety of problem contexts. Since these early beginnings, the spatial price equilibrium problem has been widely studied, extended and applied; the paper by Harker (1985) reviews many of these results. In recent years, there has been a growing interest in this problem, as evidenced by the numerous publications listed in Harker (1985). The reasons for this renewed interest are many. First, new applications of this concept have arisen which challenge the theoretical underpinnings of this model. The spatial price equilibrium concept is founded on the assumption of perfect or pure competition. The applications to energy markets, steel markets, etc. have led scholars to rethink the basic structure of this model.

Keywords

Computation complementarity energy equilibrium facility location inequality linear optimization natural gas network models operations research optimization regional science regulation sensitivity analysis transport

Editors and affiliations

  • Patrick T. Harker
    • 1
  1. 1.Department of Decision SciencesWharton School, University of PennsylvaniaPhiladelphiaUSA

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-46548-2
  • Copyright Information Springer-Verlag Berlin Heidelberg 1985
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-540-15681-9
  • Online ISBN 978-3-642-46548-2
  • Series Print ISSN 0075-8442
  • Buy this book on publisher's site
Industry Sectors
Finance, Business & Banking