General Spatial Price Equilibria: Sensitivity Analysis for Variational Inequality and Nonlinear Complementarity Formulations
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General spatial price equilibrium models are formulated as variational inequalities and as nonlinear complementarity problems. Sensitivity analysis results recently developed for variational inequalities and nonlinear complementarity problems are reviewed which give conditions for existence and equations for calculating the derivatives of solution variables with respect to perturbation parameters. These results are applied to the formulations of general spatial price equilibria; derivatives of prices, supplies, demands, and flows with respect to perturbations of supply functions, demand functions, and transportation cost functions are calculated.
KeywordsVariational Inequality Equilibrium Problem Linear Complementarity Problem Supply Function Solution Variable
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