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

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. 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 matheƯ matical programming to formalize the spatial price equilibrium problem as a nonlinear optimization problem. From this formulaƯ tion, Takayama and Judge (1964) derived their quadratic programƯ 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 Front Matter....Pages N2-VII A New Look at Spatially Competitive Facility Location Models....Pages 1-19 A Spatial Nash Equilibrium Model....Pages 20-40 Investigating the Use of the Core as a Solution Concept in Spatial Price Equilibrium Games....Pages 41-72 Computational Aspects of the International Coal Trade Model....Pages 73-117 Demand Homotopies for Computing Nonlinear and Multi-Commodity Spatial Equilibria....Pages 118-135 A Dual Conjugate Gradient Method for the Single-Commodity Spatial Price Equilibrium Problem....Pages 136-157 General Spatial Price Equilibria: Sensitivity Analysis for Variational Inequality and Nonlinear Complementarity Formulations....Pages 158-195 An Application of Quadratic Programming to the Deregulation of Natural Gas....Pages 196-207 Evaluation of Electric Power Deregulation Using Network Models of Oligopolistic Spatial Markets....Pages 208-254 Multiple Objective Analysis for a Spatial Market System: A Case Study of U.S. Agricultural Policy....Pages 255-277 Back Matter....Pages 279-281