A general dynamic spatial price equilibrium model: formulation, solution, and computational results

摘要

This paper presents a general dynamic finite horizon spatial price equilibrium model. Inventorying is allowed at both supply and demand markets and backordering is also permitted for as many time periods as dictated by the competitive equilibrium. The case of perishable commodities, where inventorying may be practicable for only one or several time periods, is handled within the model by appropriately defined feasibility conditions. Alternative variational inequality formulations are given and then exploited (akin to the work for static spatial price equilibrium problems) to construct Gauss—Seidel schemes. Computational experience for these schemes and for equilibration methods is given for a number of scenarios.