Comparing Supply Systems Derived from a Symmetric Generalized Mcfadden Profit Function to Isoelastic Supply Systems: Costs and Benefits
نویسندگان
چکیده
A major drawback of constant elasticity supply and demand systems, which are widely used in simulation models for applied policy analysis, is that they can’t be restricted to globally comply with certain conditions implied by economic theory. This paper compares constant elasticity systems to supply and demand systems derived from second order flexible functional forms (FFFs). Furthermore, supply systems in the model CEEC-ASIM, which are derived from a specific FFF, the Symmetric Generalized McFadden (SGMF) profit function, are assessed and compared to constant elasticity supply specifications which exhibit the same supply elasticities at the point of calibration.
منابع مشابه
Coordinating a Seller-Buyer Supply Chain with a Proper Allocation of Chain’s Surplus Profit Using a General Side-Payment Contract
In this paper, seller-buyer supply chain coordination with general side-payment contracts is introduced to gain the maximum possible chain profit. In our model, the logistics costs for both buyer and seller are considered and the final demand is also supposed to be a decreasing function of the retail price. Since parties aim to maximize their individual profits, the contractual parameters are s...
متن کاملBiofuel supply chain considering depreciation cost of installed plants
Due to the depletion of the fossil fuels and major concerns about the security of energy in the future to produce fuels, the importance of utilizing the renewable energies is distinguished. Nowadays there has been a growing interest for biofuels. Thus, this paper reveals a general optimization model which enables the selection of preprocessing centers for the biomass, biofuel plants, and wareho...
متن کاملA Comparative Study on Capital Formation in the Usury and Non-usury Economic Systems
The rule of ideologies which ban interest or usury which is earned through lending money has led to developing economic systems that differ from conventional economic systems in which ,interest has been entered. The presence of systems not relying on interest, in turn, has questioned the necessary motives in capital establishments through savings. In this paper, while defining the concepts of m...
متن کاملBi-objective Build-to-order Supply Chain Problem with Customer Utility
Taking into account competitive markets, manufacturers attend more customer’s personalization. Accordingly, build-to-order systems have been given more attention in recent years. In these systems, the customer is a very important asset for us and has been paid less attention in the previous studies. This paper introduces a new build-to-order problem in the supply chain. This study focuses on bo...
متن کاملCooperative network flow problem with pricing decisions and allocation of benefits: A game theory approach
Several real problems in telecommunication, transportation, and distribution industries can be well analyzed by network flow models. In revenue management, pricing plays a primary role which increases the profit generated from a limited supply of assets. Pricing decision directly affects the amount of service or product demand. Hence, in traditional maximum flow problem, we assume that the dema...
متن کامل