Demand and supply are often asymmetric, that is, cross-price effects are not equal over all commodities Because of asymmetry, conventional surplus maximization formulations cannot be employed to compute a competitive market equilibrium Thid article compares alternative formulations under a system of equation, optimization, and iterative procedures for computation A general strategy for selecting an appropriate procedure is presented The iterative procedure is recommended for structural or complex nonlinear demand systems or for extremely large (size) problems The optimization procedure is suggested for large and medium (size) problems because of the availability of a computer solution package The system of equation formulation is suggested for modeling various types of economic behavior because of Its flexlblilty


Downloads Statistics

Download Full History