scholarly journals Spatial market equilibrium in the case of linear transportation costs

2020 ◽  
Vol 16 (4) ◽  
pp. 447-454
Author(s):  
Alexander Y. Krylatov ◽  
◽  
Yulia E. Lonyagina ◽  
Ruslan I. Golubev ◽  
◽  
...  
Keyword(s):  
Nonlinear Optimization ◽  
Supply And Demand ◽  
Market Price ◽  
Market Equilibrium ◽  
Transportation Costs ◽  
Unique Equilibrium ◽  
Optimization Program ◽  
Equilibrium Prices ◽  
Dual Variables

In this article, we study the spatial market equilibrium in the case of fixed demands and supply values, the requirement of equality in regard to overall supply and overall demand, and linear transportation costs. The problem is formulated as a nonlinear optimization program with dual variables reflecting supply and demand prices. It is shown that the unique equilibrium commodity assignment pattern is obtained explicitly via equilibrium prices. Moreover, it is proved that in order to obtain absolute values of equilibrium prices, it is necessary to establish a certain base market price. Therefore, once the base market price is given, then other prices are adjusted according to spatial market equilibrium.

scholarly journals Estimating Strawberry Attributes’ Market Equilibrium Values

HortScience ◽  
2017 ◽  
Vol 52 (5) ◽  
pp. 742-748
Author(s):  
Jong Woo Choi ◽  
Chengyan Yue ◽  
James Luby ◽  
Shuoli Zhao ◽  
Karina Gallardo ◽  
...  
Keyword(s):  
Demand Curve ◽  
Supply And Demand ◽  
Mixed Logit ◽  
Market Equilibrium ◽  
Mixed Logit Model ◽  
Logit Models ◽  
Total Revenue ◽  
Mixed Logit Models ◽  
Equilibrium Prices ◽  
Social Surplus

We conducted choice experiments with both strawberry producers and consumers. Consumer and producer willingness to pay (WTP) for the fruit attributes were estimated using mixed logit models. Through simulation using the mixed logit model results, we derived the market equilibrium prices, supply and demand curve, as well as quantities demanded and supplied for every fruit attribute. We found the highest equilibrium price was for strawberry internal color followed by flavor. Strawberry breeders can use the information when setting breeding targets, allocating resources appropriately during their breeding process and focusing on the improvement of attributes that produce the highest social surplus and total revenue.

Impact of Qualitative Characteristics on Market Equilibrium: Simulation with Agent-Based Modeling

2017 ◽  
Vol 20 (02) ◽  
pp. 1750013
Author(s):  
Safae Badraoui ◽  
Khalid Bensaid ◽  
Ahmed Mouad El Haloui ◽  
Rajae Aboulaich
Keyword(s):  
Utility Function ◽  
Supply And Demand ◽  
Market Equilibrium ◽  
Ethical Aspect ◽  
Qualitative Characteristic ◽  
Individual Utility ◽  
Agent Based ◽  
Equilibrium Prices ◽  
Equilibrium Market ◽  
The Impact

This paper involves developing financial utility function that considers compliance to a certain qualitative characteristic and studies the impact on market equilibrium prices, should this criterion be Sharia compliance, fair-trade, environmental, social and governance principles or other ethical aspect. The goal is to show that individual utility can depend on other parameters than wealth and risk aversion, that therefore influence equilibrium market prices. This has been done by examining a possible utility function that takes into account individual sensitivity to the criterion and the intrinsic quality of compliance of this parameter. In order to prove the effectiveness of the proposed utility function, a simulation is made using agent-based approach with NetLogo platform. Upon examination of the impact of these parameters, it becomes clear that compliance to a qualitative characteristic would impact individual utility, supply and demand and result in equilibrium prices. This research highlights the importance of ethical arguments on individual decision making and how markets behave to this.

Demand and Supply

2017 ◽  
Author(s):  
George C. Davis ◽  
Elena L. Serrano
Keyword(s):  
Food System ◽  
Supply And Demand ◽  
Market Equilibrium ◽  
Caloric Intake ◽  
Sugar Sweetened Beverages ◽  
Market Prices ◽  
Demand And Supply ◽  
Equilibrium Prices ◽  
Sweetened Beverages ◽  
Demand Curves

Chapter 14 introduces the ideas of consumer and producer sovereignty and addresses the questions: Who determines the prices and quantities of food in our food system? Consumers? Producers? Both? The chapter demonstrates that market prices and quantities occur where consumers and producers come together in the market as represented by the market supply and demand curves. The chapter shows how changes in demand and supply will affect prices and quantities in the market. Using the demand and supply framework, the chapter analyzes the expected impact of a proposed tax on sugar sweetened beverages to decrease caloric intake. The chapter ends with a demonstration and discussion of the effects of multiple changes in demand or supply on the market equilibrium prices and quantities.

Estimation of market equilibrium values for apple attributes

2018 ◽  
Vol 10 (1) ◽  
pp. 135-151 ◽  
Author(s):  
Jong Woo Choi ◽  
Chengyan Yue ◽  
James Luby ◽  
Shuoli Zhao ◽  
Karina Gallardo ◽  
...  
Keyword(s):  
Consumer Preferences ◽  
Supply And Demand ◽  
Mixed Logit ◽  
Market Equilibrium ◽  
Breeding Programs ◽  
Content Type ◽  
Mixed Logit Models ◽  
Equilibrium Prices ◽  
Demand Curves ◽  
Social Surplus

Purpose Development of new cultivars requires extensive genetic knowledge, trained personnel, and significant financial resources, so it is crucial for breeders to focus on the attributes most preferred by the key supply chain stakeholders such as consumers and producers. The purpose of this paper is to identify which attributes generate the highest total revenue or social surplus, information that breeders can take into account as they allocate resources to focus on attributes in their breeding programs. Design/methodology/approach This study used mail-in and online surveys to collect consumer and producer choice experiment data, and then employed mixed logit models to analyze and simulate individual producer and consumer willingness to pay (WTP) for the apple attributes. Findings Based on the simulation results, this study derived the supply and demand curves and the market equilibrium prices and quantities for each apple attribute. Based on the WTP analysis for both consumer and producer, this paper found the highest equilibrium price and welfare for apples come from crispness, followed by flavor. Originality/value The authors propose a framework to estimate the equilibrium prices and quantities of a product based on the results of choice experiments. The framework can be easily adapted to understand any countries’ producer and consumer preferences for certain products.

scholarly journals A Quantitative and Qualitative Study of Food Loss in Glasshouse-Grown Tomatoes

Horticulturae ◽  
2021 ◽  
Vol 8 (1) ◽  
pp. 39
Author(s):  
Margaret Thorsen ◽  
Miranda Mirosa ◽  
Sheila Skeaff
Keyword(s):  
Supply Chain ◽  
New Zealand ◽  
Supply And Demand ◽  
Qualitative Interviews ◽  
Market Price ◽  
Food Loss ◽  
Greenhouse Tomato ◽  
Total Food ◽  
Food Losses ◽  
Key Industry

Reducing food loss and waste (FLW) is one strategy to limit the environmental impact of the food supply chain. Australian data suggest that primary production accounts for 31% of national FLW, but there are no comparable data in New Zealand. This study aimed to measure food loss and explore food loss drivers for one of New Zealand’s largest tomato growers by weighing and visually assessing tomato losses at the glasshouse, packhouse and sales warehouse. Qualitative interviews were also held with the grower (n = 3), employees (n = 10), and key industry stakeholders (n = 8). Total food loss for this greenhouse tomato grower was 16.9% of marketed yield, consisting of 13.9% unharvested tomatoes, 2.8% rejected at the glasshouse and 0.3% rejected at the packhouse. The grower’s tomato loss predominantly resulted from commercial factors such as market price, competitor activity and supply and demand. Similar issues were recognized throughout the New Zealand horticulture sector. Commercial factors, in particular, are challenging to address, and collaboration throughout the supply chain will be required to help growers reduce food losses.

An Agent-Based Model to Forecast the Inflation Rate in the Eurozone

2017 ◽  
pp. 72-92
Author(s):  
Juan Luis Santos ◽  
Jagoda Anna Kaszowska ◽  
Tomás Mancha Navarro
Keyword(s):  
Financial Institutions ◽  
Inflation Rate ◽  
Phillips Curve ◽  
Supply And Demand ◽  
Single Agent ◽  
Market Equilibrium ◽  
Agent Based Model ◽  
Agent Based ◽  
Long Run ◽  
Inflation Rates

The aim of the agent-based model presented in this chapter is to explain the determinants of inflation and to forecast the inflation rate in the Eurozone for the next five years. The behaviors of agents and their expectations are interrelated and explained by macroeconomic models applied to heterogeneous agents of three classes: individuals, companies and financial institutions. In addition, the behavior of public sector and central bank is also modeled with a single agent of each kind. Once the quantitative easing policy is implemented, the quantitative theory of money expects higher inflation rates in the long run. Inflation should remain low taking into account the Phillips-Curve. Last, according to the Aggregated Supply and Demand as well as to the Money Market equilibrium, the behaviors modeled allow forecasting low inflation. However, an external shock, as it would be an increase in the price of important commodities, can alter the inflation rate to a great extent.

scholarly journals Value and Prices in a Reinsurance Market

1979 ◽  
Vol 10 (3) ◽  
pp. 263-273 ◽  
Author(s):  
Flavio Pressacco
Keyword(s):  
Utility Function ◽  
Intrinsic Value ◽  
Market Equilibrium ◽  
Economic Problem ◽  
Point Of View ◽  
Equilibrium Prices ◽  
State Of Nature ◽  
Classical Economic ◽  
Reinsurance Market

This paper concerns the Borch model of a reinsurance market seen as a model of an economy under uncertainty.In a market of this type the goods traded are unit coverings contingent to a particular state of nature (n-tuple of claims).Our idea is to regard the probability of a state of nature as a sort of intrinsic value of the related contingent covering. From this point of view we examine the role of the reinsurance market in modifying values in market equilibrium prices and other questions, related to this classical economic problem, in the particular case of a quadratic utility function for all companies.

scholarly journals Generation of predictive price and trading volume patterns in a model of dynamically evolving free market supply and demand

2001 ◽  
Vol 6 (1) ◽  
pp. 37-47 ◽  
Author(s):  
J. K. Wang
Keyword(s):  
Stock Market ◽  
Trading Volume ◽  
Free Market ◽  
Supply And Demand ◽  
Market Price ◽  
Efficient Market Hypothesis ◽  
Apparent Contradiction ◽  
Equity Values ◽  
Price Trends ◽  
Price History

I present a model of stock market price fluctuations incorporating effects of share supply as a history-dependent function of previous purchases and share demand as a function of price deviation from moving averages. Price charts generated show intervals of oscillations switching amplitude and frequency suddenly in time, forming price and trading volume patterns well-known in market technical analysis. Ultimate price trends agree with traditional predictions for specific patterns. The consideration of dynamically evolving supply and demand in this model resolves the apparent contradiction with the Efficient Market Hypothesis: perceptions of imprecise equity values by a world of investors evolve over non-negligible periods of time, with dependence on price history.

Management Strategies for a Compressed Air Energy Storage Plant

2006 ◽  
Author(s):  
Gianmario L. Arnulfi ◽  
Martino Marini
Keyword(s):  
Energy Storage ◽  
Gas Turbines ◽  
Peak Power ◽  
Supply And Demand ◽  
Management Strategies ◽  
Market Price ◽  
Previous History ◽  
Brayton Cycle ◽  
The Hours ◽  
Turbo Expander

Energy storage can balance supply and demand over different time scales, with technical and economical benefits. In the present paper, commercial gas turbines, just modified for storage purposes, are considered. The possibility to improve their profitability in an utility perspective is investigated. The adopted strategy is based on a fair mix of different working states (charging, discharging, stand by or mere Brayton cycle operation), according to the instant energy market price, the previous history (storage level) and the plant features (reservoir and GT size). A simple mathematical model of the plant was conceived and a dynamic self-adjusting abacus was developed in order to select a suitable sequence of working ways. The expected results consist in the improvement of the daily cash flow and in the peak power augmentation. Both of them are due to the chance of exploiting a turbo expander not loaded with the compressor driving during the hours when energy price is the highest.

EQUILIBRIUM CONDITIONS OF FORWARD EXCHANGE MARKET EXPRESSED IN A SIMPLE GEOMETRIC STRUCTURE

2005 ◽  
Vol 08 (07) ◽  
pp. 915-932
Author(s):  
JIANGUO CHEN ◽  
LLOYD P. BLENMAN
Keyword(s):  
Supply And Demand ◽  
Market Equilibrium ◽  
Careful Analysis ◽  
Cost Structure ◽  
Trading Strategies ◽  
Securities Markets ◽  
Exchange Market ◽  
Equilibrium Conditions ◽  
Security Markets ◽  
Structure Setting

The paper focuses on the market equilibrium conditions in forward exchange quotes. By careful analysis of the market arbitrage conditions, market supply and demand, we construct the equilibrium ranges for bid and ask forward quotes separately. We present our analysis in a bid-ask cost structure setting, and directly tie the equilibrium and arbitrage conditions to specific trading strategies. We conclude that in equilibrium there will be no chance for one-way-arbitrage in foreign exchange and securities markets, provided that non-reversed traders are active and set the arbitrage boundaries. The framework we develop in the paper is convenient for academic study and practical use in currency and security markets.

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