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Spatial price dynamics: From complex network perspective

Author

Listed:
  • Li, Y.L.
  • Bi, J.T.
  • Sun, H.J.

Abstract

The spatial price problem means that if the supply price plus the transportation cost is less than the demand price, there exists a trade. Thus, after an amount of exchange, the demand price will decrease. This process is continuous until an equilibrium state is obtained. However, how the trade network structure affects this process has received little attention. In this paper, we give a evolving model to describe the levels of spatial price on different complex network structures. The simulation results show that the network with shorter path length is sensitive to the variation of prices.

Suggested Citation

  • Li, Y.L. & Bi, J.T. & Sun, H.J., 2008. "Spatial price dynamics: From complex network perspective," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(23), pages 5852-5856.
  • Handle: RePEc:eee:phsmap:v:387:y:2008:i:23:p:5852-5856
    DOI: 10.1016/j.physa.2008.06.008
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