In this article, we study the spatial market equilibrium in the case of fixed demands and supply values, the requirement of equality in regard to overall supply and overall demand, and linear transportation costs. The problem is formulated as a nonlinear optimization program with dual variables reflecting supply and demand prices. It is shown that the unique equilibrium commodity assignment pattern is obtained explicitly via equilibrium prices. Moreover, it is proved that in order to obtain absolute values of equilibrium prices, it is necessary to establish a certain base market price. Therefore, once the base market price is given, then other prices are adjusted according to spatial market equilibrium.

Translated title of the contributionSpatial market equilibrium in the case of linear transportation costs
Original languageRussian
Pages (from-to)447-454
Number of pages8
JournalVestnik Sankt-Peterburgskogo Universiteta, Prikladnaya Matematika, Informatika, Protsessy Upravleniya
Volume16
Issue number4
DOIs
StatePublished - Dec 2020
EventStability and Control Processes: International Conference Dedicated to the Memory of Professor Vladimir Zubov: Dedicated to the Memory of Professor Vladimir Zubov - Санкт-Петербургский Государственный Университет, Saint Petersburg, Russian Federation
Duration: 5 Oct 20209 Oct 2020
Conference number: 4
http://www.apmath.spbu.ru/scp2020/
http://www.apmath.spbu.ru/scp2020/ru/main/
http://www.apmath.spbu.ru/scp2020/eng/program/#schedule
https://link.springer.com/conference/scp

    Scopus subject areas

  • Computer Science(all)
  • Control and Optimization
  • Applied Mathematics

ID: 74602385