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A GENERALIZED SPATIAL PRICE EQUILIBRIUM MODEL
Author(s) -
Harker Patrick T.
Publication year - 1984
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1984.tb00814.x
Subject(s) - economics , profit (economics) , microeconomics , general equilibrium theory , econometrics , mathematical economics
The classical spatial price equilibrium model assumes that transport costs are known as a function of the flow on an are of the network. In reality transport costs are derived from the action of profit‐maximizing transport firms called carriers. This paper extends the spatial price equilibrium concept to include carriers and illustrates how this model can be used in the study of the U.S. coal market.