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Spatial Market Policy Modeling with Goal Targets

Author

Listed:
  • Anna Nagurney

    (University of Massachusetts, Amherst, Massachusetts)

  • Sten Thore

    (University of Texas at Austin, Austin, Texas)

  • Jie Pan

    (St. Joseph's University, Philadelphia, Pennsylvania)

Abstract

In this paper we show how the theory of variational inequalities can be applied to the formulation, qualitative analysis, and computation of a new competitive spatial market model in the presence of goal targets. The model allows the decision maker to impose supply goals at production locations, demand goals at consumption locations, and transportation goals between supply and demand locations, along with associated penalties for failure to comply. This work may be viewed as a contribution to the growing literature on the development of mathematical methodologies for policy modeling.

Suggested Citation

  • Anna Nagurney & Sten Thore & Jie Pan, 1996. "Spatial Market Policy Modeling with Goal Targets," Operations Research, INFORMS, vol. 44(2), pages 393-406, April.
    • Handle: RePEc:inm:oropre:v:44:y:1996:i:2:p:393-406
    DOI: 10.1287/opre.44.2.393
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    Citations

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    Cited by:

    1. Liu, John, 2000. "On the dynamics of stochastic diffusion of manufacturing technology," European Journal of Operational Research, Elsevier, vol. 124(3), pages 601-614, August.
    2. B. S. He & L. Z. Liao & H. Yang, 1999. "Decomposition Method for a Class of Monotone Variational Inequality Problems," Journal of Optimization Theory and Applications, Springer, vol. 103(3), pages 603-622, December.
    3. He, Bingsheng & He, Xiao-Zheng & Liu, Henry X., 2010. "Solving a class of constrained 'black-box' inverse variational inequalities," European Journal of Operational Research, Elsevier, vol. 204(3), pages 391-401, August.
    4. Anna Nagurney & Kanwalroop Kathy Dhanda, 2000. "Marketable Pollution Permits in Oligopolistic Markets with Transaction Costs," Operations Research, INFORMS, vol. 48(3), pages 424-435, June.
    5. Nagurney, Anna & Dhanda, Kathy Kanwalroop & Stranlund, John K., 1997. "General multi-product, multi-pollutant market pollution permit model: a variational inequality approach," Energy Economics, Elsevier, vol. 19(1), pages 57-76, March.
    6. Krawczyk, Jacek B., 2005. "Coupled constraint Nash equilibria in environmental games," Resource and Energy Economics, Elsevier, vol. 27(2), pages 157-181, June.

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