IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2025i67p25-44.html

Constructing a set of equilibrium prices in a generalized distributed markets model

Author

Listed:
  • Zekhov, M.

    (National Research University Higher School of Economics (HSE University), Moscow, Russia)

  • Pilnik, N.

    (National Research University Higher School of Economics (HSE University), Moscow, Russia
    Lebedev Physical Institute of the Russian Academy of Sciences, Moscow, Russia
    Federal State Budgetary Institution "Financial Research Institute", Moscow, Russia)

  • Radionov, S.

    (Lebedev Physical Institute of the Russian Academy of Sciences, Moscow, Russia
    HSE University, Moscow, Russia)

Abstract

The article discusses the generalization of a distributed markets model that describes the distribution of production volumes, sales, and prices in geographically distant markets. The interaction of agents in the model is described in terms of economic equilibrium, where agents solve their optimization problems, and their decisions must be concerted. Producers in the model are characterized by production capacities and production costs, while consumers are characterized by demand volumes. To describe the interaction between consumers and producers, a matrix of logistic costs for delivering a unit of goods from each producer to each consumer is specified. The existence of equilibrium in the model is proved under certain regularity conditions, and a finite algorithm is proposed to describe the set of equilibrium prices and volumes. The model can be used to study the effects of changes in demand and supply parameters (e. g., due to economic growth or investment in production) as well as the market logistic structure (e. g., due to sanctions).

Suggested Citation

  • Zekhov, M. & Pilnik, N. & Radionov, S., 2025. "Constructing a set of equilibrium prices in a generalized distributed markets model," Journal of the New Economic Association, New Economic Association, vol. 67(2), pages 25-44.
    • Handle: RePEc:nea:journl:y:2025:i:67:p:25-44
    DOI: 10.31737/22212264_2025_2_25-44
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2025-67-25-44r.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.31737/22212264_2025_2_25-44?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mehdi Ghiyasvand & James B. Orlin, 2012. "A Simple Approximation Algorithm for Computing Arrow-Debreu Prices," Operations Research, INFORMS, vol. 60(5), pages 1245-1248, October.
    2. Frank Smets & Rafael Wouters, 2007. "Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach," American Economic Review, American Economic Association, vol. 97(3), pages 586-606, June.
    3. Lawrence J. Christiano & Martin Eichenbaum & Charles L. Evans, 2005. "Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 1-45, February.
    4. Nikolay Pilnik & Stanislav Radionov & Ilya Tipunin, 2025. "Floor prices for spatially distributed markets," Operational Research, Springer, vol. 25(1), pages 1-28, March.
    5. Yingrui Zhou & Taiyong Li & Jiayi Shi & Zijie Qian, 2019. "A CEEMDAN and XGBOOST-Based Approach to Forecast Crude Oil Prices," Complexity, Hindawi, vol. 2019, pages 1-15, February.
    6. Frank Smets & Raf Wouters, 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area," Journal of the European Economic Association, MIT Press, vol. 1(5), pages 1123-1175, September.
    7. Eaves, B. Curtis, 1976. "A finite algorithm for the linear exchange model," Journal of Mathematical Economics, Elsevier, vol. 3(2), pages 197-203, July.
    8. Sami Ben Jabeur & Salma Mefteh-Wali & Jean-Laurent Viviani, 2024. "Forecasting gold price with the XGBoost algorithm and SHAP interaction values," Annals of Operations Research, Springer, vol. 334(1), pages 679-699, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. M. S. Zekhov & N. P. Pil’nik & S. A. Radionov, 2025. "Impact of Tariff Policy Measures on Global Markets of Mineral Fertilizers: A Quantitative Assessment," Studies on Russian Economic Development, Springer, vol. 36(5), pages 623-633, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dennis, Richard, 2010. "When is discretion superior to timeless perspective policymaking?," Journal of Monetary Economics, Elsevier, vol. 57(3), pages 266-277, April.
    2. Carlos Medel, 2017. "Forecasting Chilean inflation with the hybrid new keynesian Phillips curve: globalisation, combination, and accuracy," Journal Econom a Chilena (The Chilean Economy), Central Bank of Chile, vol. 20(3), pages 004-050, December.
    3. Hollander, Hylton & Liu, Guangling, 2016. "Credit spread variability in the U.S. business cycle: The Great Moderation versus the Great Recession," Journal of Banking & Finance, Elsevier, vol. 67(C), pages 37-52.
    4. Bermperoglou, Dimitrios & Deli, Yota & Kalyvitis, Sarantis, 2019. "Investment tax incentives and their big time-to-build fiscal multiplier," Kiel Working Papers 2143, Kiel Institute for the World Economy.
    5. Christian Schoder & Remzi Baris Tercioglu, 2024. "A climate-fiscal policy mix to achieve Türkiye’s net-zero ambition under feasibility constraints," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 21(2), pages 331-359, April.
    6. Ricardo Nunes & Jinill Kim & Jesper Linde & Davide Debortoli, 2014. "Designing a Simple Loss Function for the Fed: Does the Dual Mandate Make Sense?," 2014 Meeting Papers 1043, Society for Economic Dynamics.
    7. Tobias Cwik, 2012. "Fiscal consolidation using the example of Germany," Finance and Economics Discussion Series 2012-80, Board of Governors of the Federal Reserve System (U.S.).
    8. Onofri, Marco & Peersman, Gert & Smets, Frank, 2023. "The effectiveness of a negative interest rate policy," Journal of Monetary Economics, Elsevier, vol. 140(C), pages 16-33.
    9. John B. Taylor & Volker Wieland, 2012. "Surprising Comparative Properties of Monetary Models: Results from a New Model Database," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 800-816, August.
    10. Faust, Jon & Gupta, Abhishek, 2010. "Posterior Predictive Analysis for Evaluating DSGE Models," MPRA Paper 26721, University Library of Munich, Germany.
    11. Lechthaler, Wolfgang & Merkl, Christian & Snower, Dennis J., 2010. "Monetary persistence and the labor market: A new perspective," Journal of Economic Dynamics and Control, Elsevier, vol. 34(5), pages 968-983, May.
    12. Vo Le & Kent Matthews & David Meenagh & Patrick Minford & Zhiguo Xiao, 2014. "Banking and the Macroeconomy in China: A Banking Crisis Deferred?," Open Economies Review, Springer, vol. 25(1), pages 123-161, February.
    13. Jean-Christophe Poutineau & Gauthier Vermandel, 2015. "Quelle prise en compte des caractéristiques nationales dans les mesures macroprudentielles en zone euro ?," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 95-141.
    14. Karimova, Amira & Simsek, Esra & Orhan, Mehmet, 2020. "Policy implications of the Lucas Critique empirically tested along the global financial crisis," Journal of Policy Modeling, Elsevier, vol. 42(1), pages 153-172.
    15. Furlanetto, Francesco, 2011. "Fiscal stimulus and the role of wage rigidity," Journal of Economic Dynamics and Control, Elsevier, vol. 35(4), pages 512-527, April.
    16. Erceg, Christopher J. & Lindé, Jesper, 2013. "Fiscal consolidation in a currency union: Spending cuts vs. tax hikes," Journal of Economic Dynamics and Control, Elsevier, vol. 37(2), pages 422-445.
    17. Albonico, Alice & Tirelli, Patrizio, 2020. "Financial crises and sudden stops: Was the European monetary union crisis different?," Economic Modelling, Elsevier, vol. 93(C), pages 13-26.
    18. Alexei Onatski & Noah Williams, 2010. "Empirical and policy performance of a forward‐looking monetary model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 25(1), pages 145-176, January.
    19. Georgiana-Alina Ionita, 2016. "The Role of the Monetary Policy in the Context of the Macroeconomic Policies Mix –A Fiscal and Monetary Policy Case Study for Romania," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(6), pages 195-212, DECEMBER.
    20. Ippei Fujiwara & Yasuo Hirose & Mototsugu Shintani, 2011. "Can News Be a Major Source of Aggregate Fluctuations? A Bayesian DSGE Approach," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(1), pages 1-29, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2025:i:67:p:25-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.