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Determining Optimal Use of Resources among Regional Producers under Differing Levels of Cooperation

Author

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  • Robert B. Rovinsky

    (U.S. Department of Agriculture, Washington, D.C.)

  • Christine A. Shoemaker

    (Cornell University, Ithaca, New York)

  • Michael J. Todd

    (Cornell University, Ithaca, New York)

Abstract

We determine optimal allocation of means of production between a principal and alternative commodities under varying degrees of cooperation among producers. Producers are grouped into subsets with stipulated efficiencies, costs of production and demand prices. These producers collectively control the production of the principal commodity whose price depends upon total supply. Optimal allocation is determined under conditions of (1) pure competition, (2) cooperation within subsets, and (3) cooperation among all producers. The latter problem is modeled as a nonconcave quadratic programming problem. A very efficient algorithm for solving this problem is presented. This algorithm has been used to determine the optimal distribution of cotton production among 300 regions.

Suggested Citation

  • Robert B. Rovinsky & Christine A. Shoemaker & Michael J. Todd, 1980. "Determining Optimal Use of Resources among Regional Producers under Differing Levels of Cooperation," Operations Research, INFORMS, vol. 28(4), pages 859-866, August.
    • Handle: RePEc:inm:oropre:v:28:y:1980:i:4:p:859-866
    DOI: 10.1287/opre.28.4.859
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    Cited by:

    1. Jang, Joonkyung, 1992. "A spatial equilibrium analysis of the impact of transportation costs and policy changes on the export of U.S. beef and feed grains," ISU General Staff Papers 1992010108000017632, Iowa State University, Department of Economics.

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