A Dispersed Equilibrium Commodity Trade Model
AbstractFor many bulk commodities, such as mineral ores, crude oil, building materials and food grains, the suppliers are increasingly in the position of being price-takers. This means that, in the short run, their main decisions relate to spatial choice of markets and setting of production levels within the currently available capacity. In this paper, an entropy maximization framework is introduced to handle dispersion about the profit-maximizing choice of markets and production levels by the suppliers. The model also uses information theory to implicitly account for certain rigidities in trading relationships resulting from non-price factors. Although demand functions must be provided exogenously, cost functions can be inferred from regional vintage production data, which in turn allow profit functions to be defined for each producing region or country. A unique and stable dispersed price equilibrium of the Walrasian type is established for this spatial system under quite general conditions.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Springer in its journal Annals of Regional Science.
Volume (Year): 24 (1990)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00168/index.htm
More information through EDIRC
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.