Spatial Price Equilibrium: Advances in Theory, Computation and Application

1. Front Matter

   Pages N2-VII

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2. A New Look at Spatially Competitive Facility Location Models

   • Roger L. Tobin, Terry L. Friesz

   Pages 1-19

3. A Spatial Nash Equilibrium Model

   • Hideo Hashimoto

   Pages 20-40

4. Investigating the Use of the Core as a Solution Concept in Spatial Price Equilibrium Games

   • Patrick T. Harker

   Pages 41-72

5. Computational Aspects of the International Coal Trade Model

   • James E. Falk, Garth P. McCormick

   Pages 73-117

6. Demand Homotopies for Computing Nonlinear and Multi-Commodity Spatial Equilibria

   • Philip C. Jones, Romesh Saigal, Michael Schneider

   Pages 118-135

7. A Dual Conjugate Gradient Method for the Single-Commodity Spatial Price Equilibrium Problem

   • Jong-Shi Pang, Yuh-Yang Lin

   Pages 136-157

8. General Spatial Price Equilibria: Sensitivity Analysis for Variational Inequality and Nonlinear Complementarity Formulations

   • Roger L. Tobin

   Pages 158-195

9. An Application of Quadratic Programming to the Deregulation of Natural Gas

   • Jeffrey E. Sohl

   Pages 196-207

10. Evaluation of Electric Power Deregulation Using Network Models of Oligopolistic Spatial Markets

    • Benjamin F. Hobbs, Richard E. Schuler

    Pages 208-254

11. Multiple Objective Analysis for a Spatial Market System: A Case Study of U.S. Agricultural Policy

    • Elizabeth Erickson, Robert House

    Pages 255-277

12. Back Matter

    Pages 279-281

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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.

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

• Department of Decision Sciences, Wharton School, University of Pennsylvania, Philadelphia, USA

  Patrick T. Harker

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