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A Cost-Efficiency Theory of Dispersed Network Equilibria

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  • T E Smith

    (Department of Regional Science, University of Pennsylvania, Philadelphia, PA 19104)

Abstract

The purpose of this paper is to unite two current approaches to modeling dispersed spatial-interaction behavior: the entropy-smoothing approach, and the cost-efficiency approach. The main result of the paper is to show that those interaction flows determined by entropy-smoothing techniques correspond (for large flows) to the most probable flow patterns consistent with cost-efficient spatial-interaction behavior. In addition, it is shown that under very general conditions, these flow patterns are indeed overwhelmingly most probable. Thus, these results establish a clear behavioral foundation for entropy-smoothing techniques in terms of the cost-efficiency theory. Finally, a number of statistical estimation procedures are developed for operationalizing this theory.

Suggested Citation

  • T E Smith, 1988. "A Cost-Efficiency Theory of Dispersed Network Equilibria," Environment and Planning A, , vol. 20(2), pages 231-266, February.
    • Handle: RePEc:sae:envira:v:20:y:1988:i:2:p:231-266
    DOI: 10.1068/a200231
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    References listed on IDEAS

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    1. David E. Boyce & Lars Lundqvist, 1987. "Network Equilibrium Models Of Urban Location And Travel Choices: Alternative Formulations For The Stockholm Region," Papers in Regional Science, Wiley Blackwell, vol. 61(1), pages 93-104, January.
    2. Yosef Sheffi & Carlos F. Daganzo, 1980. "Computation of Equilibrium Over Transportation Networks: The Case of Disaggregate Demand Models," Transportation Science, INFORMS, vol. 14(2), pages 155-173, May.
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