Uniqueness of Market Equilibria on Networks with Transport Costs

  • We study the existence and uniqueness of equilibria for perfectly competitive markets in capacitated transport networks. The model under consideration is rather general so that it captures basic aspects of related models in, e.g., gas or electricity networks. We formulate the market equilibrium model as a mixed complementarity problem and show the equivalence to a welfare maximization problem. Using the latter we prove uniqueness of the resulting equilibrium for piecewise linear and symmetric transport costs under additional mild assumptions. Moreover, we show the necessity of these assumptions by illustrating examples that possess multiple solutions if our assumptions are violated.

Download full text files

Export metadata

Metadaten
Author:Vanessa Krebs, Martin Schmidt
Parent Title (English):Operations Research Perspectives
Document Type:Article
Language:English
Date of Publication (online):2017/11/22
Date of first Publication:2017/11/22
Release Date:2017/11/22
Tag:Market Equilibria; Networks; Perfect Competition; Transport Costs; Uniqueness
Issue:5
Page Number:5
First Page:169
Last Page:173
Institutes:Friedrich-Alexander-Universität Erlangen-Nürnberg
Subprojects:B08