A PROGRESSIVE EQUILIBRATION ALGORITHM FOR GENERAL MARKET EQUILIBRIUM PROBLEMS UNDER CONSTRAINTS

This paper considers the general Spatial Price Equilibrium (SPE) problem under constraints of supply-guarantee at demand markets and, in the meantime, protecting the scarce resources at supply markets. We first formulate the equilibrium problem as a variational inequality (VI) problem with partially unknown mapping. Then, we propose a progressive equilibration algorithm for solving the problem under consideration. The global convergence of the proposed method is proved under suitable assumptions. Some preliminary numerical results demonstrate the reliability of the proposed algorithm.