Jose C. Melendez-Hidalgo, Free University of Amsterdam, Spatial Economics Department, Amsterdam, The Netherlands, Erik T. Verhoef, Free University Amsterdam, Amsterdam, The Netherlands, Piet Rietveld, Free University, Amsterdam.
Tinbergen Institute, Amsterdam., Amsterdam, The Netherlands
On the surplus equivalence problem with networks and congestion (assigned to theme
This paper addresses the surplus equivalence problem as described in Jara-Diaz (1986) using spatial price equilibrim models. We extend the network environment to include more than two nodes, transhipment nodes and study the consequences of infrastructure improvements allowing for congestion effects and Braess paradox phenomena. Results are derived using simulations under alternative industrial organizations for the product markets.
 | Conference organized through conf-vienna
(copyright Gunther Maier) |