Ebook: Network Economics: A Variational Inequality Approach

Since the publication of the first edition of Network Economics: A Variational Inequality Approach in 1993, there have been many ad­ vances in both methodological developments, as well as, applications in this field. These have occurred in an environment of an increasingly networked global economy, in which the importance of transportation networks and communication networks is now well-recognized, with net­ works such as knowledge networks, environmental networks, and finan­ cial networks receiving growing attention. This edition adds recent research progress in new and evolving ar­ eas of network economics through common and unifying principles. In addition, it includes dynamic models of traffic, of spatially separated markets, of oligopolistic markets, and of financial markets. In order to expand the range and reach of this material, we have also included a series of problems in an appendix for self-study purposes and for use in the classroom. We note that computational economics has been at the forefront in stimulating the development of mathematical methodologies for the analysis and solution of complex, large-scale problems. The past fifteen years, in particular, have witnessed a dramatic growth of interest in this area. Supported by the increasing availability of data and by advances in computer architectures, the scale and dimensions of problems that can now be handled are unveiling new horizons in both theoretical modeling and policy analysis.

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The second and revised edition of Network Economics: A VariationalInequality Approach provides an updated treatment of network economics through the inclusion of new theoretical results and new applications, as well as problems for self-study purposes and/or for use in the classroom. This volume remains true to the first edition in that it provides a unified treatment of finite-dimensional variational inequalities, algorithms, and applications.
Physical networks are pervasive in today's society in the form of transportation networks, telecommunication networks, energy networks, and financial networks, whereas mathematical networks provide a mechanism for studying a plethora of economic equilibrium problems through a common graphic structure. Network Economics establishes the connections among economic equilibrium problems through their network structure and demonstrates how the structure can then be used to address policy interventions, as well as to construct efficient numerical schemes for the computation of equilibria.
The network framework provides not only a mechanism for the graphic representation of economic problems and a means for visualizing their similarities and differences, but, in addition, a novel theoretical approach.
Problems treated include: congested transportation systems, oligopolistic market equilibrium problems, problems of human migration, and general financial and economic equilibrium problems. New applications covered in this second edition include environmental networks and knowledge networks.