Spatial market policy modeling with goal targets

Spatial market policy modeling with goal targets

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Article ID: iaor20002664
Country: United States
Volume: 44
Issue: 2
Start Page Number: 393
End Page Number: 406
Publication Date: Mar 1996
Journal: Operations Research
Authors: , ,
Keywords: programming: goal
Abstract:

In this paper we show how the theory of variational inequalities can be applied to the formulation, qualitative analysis, and computation of a new competitive spatial market model in the presence of goal targets. The model allows the decision maker to impose supply goals at production locations, demand goals at consumption locations, and transportation goals between supply and demand locations, along with associated penalties for failure to comply. This work may be viewed as a contribution to the growing literature on the development of mathematical methodologies for policy modeling.

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