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Inclusion of nonlinear demand–supply relationships within large-scale partial equilibrium linear programming models

Author

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  • T Rehman

    (The University of Reading)

  • C M Yates

    (The University of Reading)

Abstract

This paper presents a new method for the inclusion of nonlinear demand and supply relationships within a linear programming model. An existing method for this purpose is described first and its shortcomings are pointed out before showing how the new approach overcomes those difficulties and how it provides a more accurate and ‘smooth’ (rather than a kinked) approximation of the nonlinear functions as well as dealing with equilibrium under perfect competition instead of handling just the monopolistic situation. The workings of the proposed method are illustrated by extending a previously available sectoral model for the UK agriculture.

Suggested Citation

  • T Rehman & C M Yates, 2005. "Inclusion of nonlinear demand–supply relationships within large-scale partial equilibrium linear programming models," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(3), pages 317-323, March.
    • Handle: RePEc:pal:jorsoc:v:56:y:2005:i:3:d:10.1057_palgrave.jors.2601814
    DOI: 10.1057/palgrave.jors.2601814
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    References listed on IDEAS

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    1. Bruce A. McCarl & Thomas H. Spreen, 1980. "Price Endogenous Mathematical Programming As a Tool for Sector Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 87-102.
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    4. Neil R. Martin, 1972. "Stepped Product Demand and Factor Supply Functions in Linear Programming Analyses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 116-120.
    5. John H. Duloy & Roger D. Norton, 1975. "Prices and Incomes in Linear Programming Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(4), pages 591-600.
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