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Annals of Operations Research

, Volume 68, Issue 2, pp 281–300 | Cite as

Massively parallel computation of large-scale spatial price equilibrium models with discriminatory ad valorem tariffs

  • Anna Nagurney
  • Charles F. Nicholson
  • Phillip M. Bishop
  • Phillip M. Bishop
The Computation of General Equilibria

Abstract

In this paper, we develop a perfectly competitive spatial equilibrium model in price and quantity variables in the presence of discriminatory ad valorem tariffs, a widely used trade policy instrument. We derive the equilibrium conditions and formulate them as a variational inequality problem. An algorithm is then proposed for the computation of the equilibrium pattern and convergence results established. The algorithm resolves the problem into very simple subproblems, each of which can be solved simultaneously and in closed form. Finally, the algorithm is implemented on the massively parallel Thinking Machines CM-2 and CM-5 architectures, known as the Connection Machines, and numerical results presented.

Keywords

Spatial price equilibria discriminatory ad valorem tariffs variational inequalities massively parallel computation 

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Copyright information

© J.C. Baltzer AG, Science Publishers 1996

Authors and Affiliations

  • Anna Nagurney
    • 1
  • Charles F. Nicholson
    • 2
  • Phillip M. Bishop
    • 2
  • Phillip M. Bishop
    • 2
  1. 1.School of ManagementUniversity of MassachusettsAmherstUSA
  2. 2.Department of Agricultural, Resource and Managerial EconomicsCornell UniversityIthacaUSA

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