CONTROL STRATEGY FOR SPATIAL TRADE MODELS INCORPORATING TRANSPORTATION COSTS.

A spatial trade model consisting of several suppliers and markets for shipping and receiving a commodity is examined under an assumption of perfect competition. The proposed dynamic model incorporates the effects of transportation costs separating suppliers from markets. Maximization of a suitably defined social pay-off function leads to an optimal control of the dynamic system. The control law is arrived at using a computational algorithm. A numerical example illustrates the application of this algorithm.

Duke Authors

Cited Authors

  • Garg Devendra, P

Published Date

  • 1973

Published In

  • Wyoming University, Water Resources Research Institute, Water Resources Series

Start / End Page

  • 321 - 327