Spatial Price Equilibrium, Welfare And Quadratic Programming

Yıl 1999, Cilt: 1 Sayı: 2, 67 - 76, 01.12.1999

Muzaffer Sarımeşeli

Öz

This paper is an ettempt to examine the theoretical aspects of a single product spatial equilibrium analysis. In the first section of the paper spatial equilibrium analysis is defined.In the second section attention is directed to the problem of solving the equilibrium conditions for a set of known linear demand and supply functions and a given vector of transportation costs. For this purpose a quadratic programming model was utilized. In the third section the welfare implications of the spatial price equilibrium models are investigated.