Abstract
This paper examines the commodity price equilibrium problem in a spatially extended market. The earlier continuous equilibrium modeling approach is extended by explicitly taking into account congestion effects. An optimization model with a flow-dependent transportation cost function is proposed and its dual formulation in terms of a potential function is derived. The complementarity conditions between the primal and dual problems are shown to be equivalent to the spatial price equilibrium conditions with congestion effects.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Beckmann, MJ, Puu, T (1985) Spatial economics: density, potential and flow. Studies in regional science and urban economics. Elsevier, New York
Tobler, WR (1985) Derivation of a spatially continuous transportation model. Transp. Res.19A: 169–172
Yang, H, Yagar, S, Iida, Y (1994) Traffic assignment in a congested discrete/continuous transportation system. Transp. Res.28B, 161–174
Zhang, Wei-Bin (1991) Synergetic economics: Time and change in nonlinear economics. Springer, Berlin Heidelberg
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Yang, H. A spatial price equilibrium model with congestion effects. Ann Reg Sci 30, 359–371 (1996). https://doi.org/10.1007/BF01581949
Received:
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/BF01581949