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Solution of Spatial Equilibrium Problems with Benders Decomposition

Author

Listed:
  • Joseph Polito

    (Pritsker & Associates, Inc., Albuquerque, New Mexico)

  • Bruce A. McCarl

    (Purdue University)

  • Thomas L. Morin

    (Purdue University)

Abstract

Spatial equilibrium problems are frequently formulated as large scale quadratic programming problems or linear complementarity problems. We show that these problems can be reduced to two or more smaller problems with Generalized Benders Decomposition. The procedure then becomes iterative with the repetitive solution of the smaller problems. In practice, the iterative procedure has converged rapidly.

Suggested Citation

  • Joseph Polito & Bruce A. McCarl & Thomas L. Morin, 1980. "Solution of Spatial Equilibrium Problems with Benders Decomposition," Management Science, INFORMS, vol. 26(6), pages 593-605, June.
    • Handle: RePEc:inm:ormnsc:v:26:y:1980:i:6:p:593-605
    DOI: 10.1287/mnsc.26.6.593
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