IDEAS home Printed from https://ideas.repec.org/a/ags/uersja/136854.html
   My bibliography  Save this article

Computing an Asymmetric Competitive Market Equilibrium

Author

Listed:
  • Huang, Wen-Yuan
  • Eswaramoorthy, K.
  • Johnson, Stanley R.

Abstract

Demand and supply are often asymmetric, that is, cross-price effects are not equal over all commodities Because of asymmetry, conventional surplus maximization formulations cannot be employed to compute a competitive market equilibrium Thid article compares alternative formulations under a system of equation, optimization, and iterative procedures for computation A general strategy for selecting an appropriate procedure is presented The iterative procedure is recommended for structural or complex nonlinear demand systems or for extremely large (size) problems The optimization procedure is suggested for large and medium (size) problems because of the availability of a computer solution package The system of equation formulation is suggested for modeling various types of economic behavior because of Its flexlblilty

Suggested Citation

  • Huang, Wen-Yuan & Eswaramoorthy, K. & Johnson, Stanley R., 1987. "Computing an Asymmetric Competitive Market Equilibrium," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 39(3), pages 1-10.
    • Handle: RePEc:ags:uersja:136854
    DOI: 10.22004/ag.econ.136854
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/136854/files/Huang_39_3.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.136854?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. C. E. Lemke, 1965. "Bimatrix Equilibrium Points and Mathematical Programming," Management Science, INFORMS, vol. 11(7), pages 681-689, May.
    2. Littlechild, S. C. & Rousseau, J. J., 1975. "Pricing policy of a U.S. telephone company," Journal of Public Economics, Elsevier, vol. 4(1), pages 35-56, February.
    3. Takayama, T. & Uri, Noel, 1983. "A note on spatial and temporal price and allocation modeling : Quadratic programming or linear complementary programming?," Regional Science and Urban Economics, Elsevier, vol. 13(4), pages 455-470, November.
    4. Schatzer, Raymond Joe, 1982. "Tatonnement modeling with linear programming: demand and supply for some United States crops in 2000," ISU General Staff Papers 198201010800008479, Iowa State University, Department of Economics.
    5. Chipman, John S & Moore, James C, 1980. "Compensating Variation, Consumer's Surplus, and Welfare," American Economic Review, American Economic Association, vol. 70(5), pages 933-949, December.
    6. Bhide, Shashanka, 1980. "A separable programming model incorporating linear demand functions for grains and vegetable oils: an analysis of United States agriculture in 1985," ISU General Staff Papers 198001010800008364, Iowa State University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    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. Pizer, William A. & Kopp, Raymond, 2005. "Calculating the Costs of Environmental Regulation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 25, pages 1307-1351, Elsevier.
    2. Gerard van der Laan & Dolf Talman & Zaifu Yang, 2005. "Solving Discrete Zero Point Problems with Vector Labeling," Tinbergen Institute Discussion Papers 05-106/1, Tinbergen Institute.
    3. van der Laan, G. & Talman, A.J.J. & Yang, Z.F., 2005. "Computing Integral Solutions of Complementarity Problems," Discussion Paper 2005-5, Tilburg University, Center for Economic Research.
    4. Zhang, Bin, 2012. "Multi-tier binary solution method for multi-product newsvendor problem with multiple constraints," European Journal of Operational Research, Elsevier, vol. 218(2), pages 426-434.
    5. Jiang, Yunyun & Zhao, Tianhao & Zheng, Haitao, 2021. "Population aging and its effects on the gap of urban public health insurance in China," China Economic Review, Elsevier, vol. 68(C).
    6. Talman, A.J.J. & van der Heyden, L., 1981. "Algorithms for the linear complementarity problem which allow an arbitrary starting point," Research Memorandum FEW 99, Tilburg University, School of Economics and Management.
    7. Ramírez–Hassan, Andrés & López-Vera, Alejandro, 2024. "Welfare implications of a tax on electricity: A semi-parametric specification of the incomplete EASI demand system," Energy Economics, Elsevier, vol. 131(C).
    8. Arndt, Channing & Schiller, Rico & Tarp, Finn, 2001. "Grain transport and rural credit in Mozambique: solving the space-time problem," Agricultural Economics, Blackwell, vol. 25(1), pages 59-70, June.
    9. Andr'es Ram'irez-Hassan & Alejandro L'opez-Vera, 2021. "Semi-parametric estimation of the EASI model: Welfare implications of taxes identifying clusters due to unobserved preference heterogeneity," Papers 2109.07646, arXiv.org.
    10. Van Kooten, G. C., 1987. "The Economic Impacts on Consumers of Government Intervention in the Poultry and Egg Sectors: A Comparison of Alternative Welfare Measures," Working Papers 243873, Agriculture and Agri-Food Canada.
    11. Charles Blackorby & David Donaldson & John A. Weymark, 2008. "Hicksian Surplus Measures of Individual Welfare Change When There is Price and Income Uncertainty," Studies in Choice and Welfare, in: Prasanta K. Pattanaik & Koichi Tadenuma & Yongsheng Xu & Naoki Yoshihara (ed.), Rational Choice and Social Welfare, pages 195-213, Springer.
    12. Baohua Huang & Wen Li, 2023. "A smoothing Newton method based on the modulus equation for a class of weakly nonlinear complementarity problems," Computational Optimization and Applications, Springer, vol. 86(1), pages 345-381, September.
    13. Bernhard von Stengel & Antoon van den Elzen & Dolf Talman, 2002. "Computing Normal Form Perfect Equilibria for Extensive Two-Person Games," Econometrica, Econometric Society, vol. 70(2), pages 693-715, March.
    14. Christian Bidard, 2012. "The Frail Grounds of the Ricardian Dynamics," Working Papers hal-04141039, HAL.
    15. Keir G. Armstrong, 2004. "A Graphical Depiction of Hicksian Partial-Equilibrium Welfare Analysis," Carleton Economic Papers 04-09, Carleton University, Department of Economics.
    16. Hanna Sumita & Naonori Kakimura & Kazuhisa Makino, 2019. "Total dual integrality of the linear complementarity problem," Annals of Operations Research, Springer, vol. 274(1), pages 531-553, March.
    17. Kinsey, Jean D. & Roe, Terry L. & Sexauer, Benjamin, 1980. "Imperfect Information, Consumer Theory, And Allocative Error In Consumption," Staff Papers 13742, University of Minnesota, Department of Applied Economics.
    18. Richard Cottle, 2010. "A field guide to the matrix classes found in the literature of the linear complementarity problem," Journal of Global Optimization, Springer, vol. 46(4), pages 571-580, April.
    19. R. B. Bapat & S. K. Neogy, 2016. "On a quadratic programming problem involving distances in trees," Annals of Operations Research, Springer, vol. 243(1), pages 365-373, August.
    20. Frederic Murphy & Axel Pierru & Yves Smeers, 2016. "A Tutorial on Building Policy Models as Mixed-Complementarity Problems," Interfaces, INFORMS, vol. 46(6), pages 465-481, December.

    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:ags:uersja:136854. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.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.