This document gives a short introduction into Spatial Equilibrium modeling with GAMS. 1. Intertemporal-Spatial Price Equilibrium Solving spatial equilibrium models by mathematical programming is pioneered by [9],[12], [11], and [13]. One of the most basic forms is the transportation problem, also known as the “Koopmans-Hitchcock” model. An example is found in the GAMS model library in trnsport....

Proof of Theorem 4. For wa ∈ [c + ck, rck w−c ], we have the boundary equilibrium. From its definition, yb(ξ) is decreasing in wa (that is, dyb(ξ) dwa < 0) and yb(ξ) = μ + ξ + G−1( r−c−ck r ) when wa = c + ck. The total supply chain profit at the boundary equilibrium is Πtot(yb(ξ), yb(ξ), ξ) = rEmin(μ + ξ + , yb(ξ)) − (c + ck)y(ξ) from Equations (16) and (17). This function is concave and incre...

The liberalisation of the natural gas markets and the importance of natural gas as a transition fuel to a low-carbon economy have led to the development of several large-scale equilibrium models in the last decade. These models combine long-term market equilibria and investments in infrastructure while accounting for market power by certain suppliers. They are widely used to simulate market out...

In the recent decades, rapid population growth has led to the significant increase in food demand. Food supply chain has always been one of the most important and challenging management issues. Product with short age, especially foodstuffs, is the most problematic challenges for supply chain management. These challenges are mainly due to the diversity in the number of these goods, the special n...

Consider a multi-tiered supply chain network which contains manufacturers, distributors and consumers. A manufacturer located at the top tier of this supply chain is supposed to be concerned with the production of products and shipments to the distributors for profit maximization. In turn, a distributor located in the middle tier of the supply chain is faced with handling and managing the produ...

This paper presents a discrete network design problem for optimally designing freight transport network in terms of the efficiency of supply chain. Modelling is undertaken within the framework of mathematical programmes with equilibrium constraints, which first incorporates both supply chain and transport networks explicitly. The upper level determines the best set of actions for transport netw...

We develop a game theory model for supply chain network competition in timesensitive markets in which consumers respond to the average delivery time associated with the various firms’ products. The firms’ behavior is captured, along with the supply chain network topologies, with the governing equilibrium concept being that of Nash equilibrium. We derive the variational inequality formulation of...