Analysis of equilibrium prices and quantities within network-structured markets applying the Lagrange function method

E. Aiyoshi, A. Maki, M. Nishida

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In the modern market economic system, there are many brokers between primary producers and final producers or consumers. For example, many farmers produce vegetables and supply them to consumers. Between the farmers and consumers there are many brokers called retailers. The involved transactions are modeled by network-structured markets. Equilibrium market prices are obtained as the optimal Lagrange multipliers. The present paper analyzes changes in equilibrium prices and quantities within network-structured markets using the Lagrange function method. Then, different network structures and different specification for the sales and cost functions within the network-structured markets are analyzed.

Original languageEnglish
Title of host publicationMODSIM 2011 - 19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty
Pages1345-1351
Number of pages7
Publication statusPublished - 2011
Event19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty, MODSIM2011 - Perth, WA, Australia
Duration: 2011 Dec 122011 Dec 16

Other

Other19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty, MODSIM2011
CountryAustralia
CityPerth, WA
Period11/12/1211/12/16

Fingerprint

Lagrange multipliers
Vegetables
Lagrange
Cost functions
Sales
Specifications
Economics
Market Equilibrium
Network Structure
Transactions
Cost Function
Specification
Market

Keywords

  • Duality theorem for optimization
  • Lagrange function method
  • Lagrange multipliers
  • Network-structured market

ASJC Scopus subject areas

  • Modelling and Simulation

Cite this

Aiyoshi, E., Maki, A., & Nishida, M. (2011). Analysis of equilibrium prices and quantities within network-structured markets applying the Lagrange function method. In MODSIM 2011 - 19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty (pp. 1345-1351)

Analysis of equilibrium prices and quantities within network-structured markets applying the Lagrange function method. / Aiyoshi, E.; Maki, A.; Nishida, M.

MODSIM 2011 - 19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty. 2011. p. 1345-1351.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Aiyoshi, E, Maki, A & Nishida, M 2011, Analysis of equilibrium prices and quantities within network-structured markets applying the Lagrange function method. in MODSIM 2011 - 19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty. pp. 1345-1351, 19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty, MODSIM2011, Perth, WA, Australia, 11/12/12.
Aiyoshi E, Maki A, Nishida M. Analysis of equilibrium prices and quantities within network-structured markets applying the Lagrange function method. In MODSIM 2011 - 19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty. 2011. p. 1345-1351
Aiyoshi, E. ; Maki, A. ; Nishida, M. / Analysis of equilibrium prices and quantities within network-structured markets applying the Lagrange function method. MODSIM 2011 - 19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty. 2011. pp. 1345-1351
@inproceedings{ba4975e20483453190247ccba703111d,
title = "Analysis of equilibrium prices and quantities within network-structured markets applying the Lagrange function method",
abstract = "In the modern market economic system, there are many brokers between primary producers and final producers or consumers. For example, many farmers produce vegetables and supply them to consumers. Between the farmers and consumers there are many brokers called retailers. The involved transactions are modeled by network-structured markets. Equilibrium market prices are obtained as the optimal Lagrange multipliers. The present paper analyzes changes in equilibrium prices and quantities within network-structured markets using the Lagrange function method. Then, different network structures and different specification for the sales and cost functions within the network-structured markets are analyzed.",
keywords = "Duality theorem for optimization, Lagrange function method, Lagrange multipliers, Network-structured market",
author = "E. Aiyoshi and A. Maki and M. Nishida",
year = "2011",
language = "English",
isbn = "9780987214317",
pages = "1345--1351",
booktitle = "MODSIM 2011 - 19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty",

}

TY - GEN

T1 - Analysis of equilibrium prices and quantities within network-structured markets applying the Lagrange function method

AU - Aiyoshi, E.

AU - Maki, A.

AU - Nishida, M.

PY - 2011

Y1 - 2011

N2 - In the modern market economic system, there are many brokers between primary producers and final producers or consumers. For example, many farmers produce vegetables and supply them to consumers. Between the farmers and consumers there are many brokers called retailers. The involved transactions are modeled by network-structured markets. Equilibrium market prices are obtained as the optimal Lagrange multipliers. The present paper analyzes changes in equilibrium prices and quantities within network-structured markets using the Lagrange function method. Then, different network structures and different specification for the sales and cost functions within the network-structured markets are analyzed.

AB - In the modern market economic system, there are many brokers between primary producers and final producers or consumers. For example, many farmers produce vegetables and supply them to consumers. Between the farmers and consumers there are many brokers called retailers. The involved transactions are modeled by network-structured markets. Equilibrium market prices are obtained as the optimal Lagrange multipliers. The present paper analyzes changes in equilibrium prices and quantities within network-structured markets using the Lagrange function method. Then, different network structures and different specification for the sales and cost functions within the network-structured markets are analyzed.

KW - Duality theorem for optimization

KW - Lagrange function method

KW - Lagrange multipliers

KW - Network-structured market

UR - http://www.scopus.com/inward/record.url?scp=84858823219&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84858823219&partnerID=8YFLogxK

M3 - Conference contribution

AN - SCOPUS:84858823219

SN - 9780987214317

SP - 1345

EP - 1351

BT - MODSIM 2011 - 19th International Congress on Modelling and Simulation - Sustaining Our Future: Understanding and Living with Uncertainty

ER -