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Generalized Network Spatial Equilibrium: The Deterministic And The Chance‐Constrained Case

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  • Sten Thore

Abstract

ABSTRACT The flow along each link in a generalized network is amplified or attenuated by some constant factor during the course of its traversal of the link. It is shown that the equilibrium solution can be found by employing a well‐known extremal principle, originally due to P. A. Samuelson. When the attenuation factor along each link is random, the Kirchhoff node conditions can no longer be satisfied with certainty, but may be replaced by a chance constraint. The extremal principle can be employed again, and this time lakes the form of a chance‐constrained nonlinear program. The solution involves the existence of an optimal buffer stock at each node.

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  • Sten Thore, 1986. "Generalized Network Spatial Equilibrium: The Deterministic And The Chance‐Constrained Case," Papers in Regional Science, Wiley Blackwell, vol. 59(1), pages 93-102, January.
    • Handle: RePEc:bla:presci:v:59:y:1986:i:1:p:93-102
    DOI: 10.1111/j.1435-5597.1986.tb00984.x
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