Arthur Charpentier, Alfred Galichon, Lucas Vernet
arXiv 4 Jul 2019 · General Economics · 3 citations (OpenAlex)
arXiv:1907.02320 · PDF · DOI · OpenAlex · Extracted main text
This article presents a set of tools for the modeling of a spatial allocation problem in a large geographic market and gives examples of applications. In our settings, the market is described by a network that maps the cost of travel between each pair of adjacent locations. Two types of agents are located at the nodes of this network. The buyers choose the most competitive sellers depending on their prices and the cost to reach them. Their utility is assumed additive in both these quantities. Each seller, taking as given other sellers prices, sets her own price to have a demand equal to the one we observed. We give a linear programming formulation for the equilibrium conditions. After formally introducing our model we apply it on two examples: prices offered by petrol stations and quality of services provided by maternity wards. These examples illustrate the applicability of our model to aggregate demand, rank prices and estimate cost structure over the network. We insist on the possibility of applications to large scale data sets using modern linear programming solvers such as Gurobi. In addition to this paper we released a R toolbox to implement our results and an online tutorial (http://optimalnetwork.github.io)
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| * | unmatched citation key * | 0.405 | 1 | 1 | 100% |
| 2 | Allen, T. and Arkolakis, C (2014) Trade and the topography of the spatial economy | 0.405 | 1 | 1 | 100% |
| 3 | Allen, T., Arkolakis, C., and Li, X (2015) On the existence and uniqueness of trade equilibria | 0.405 | 1 | 1 | 100% |
| 4 | Allen, T. and Arkolakis, C (2016) The welfare effects of transportation infrastructure improvements | 0.405 | 1 | 1 | 100% |
| 5 | Bertsekas, D. P (1998) Network optimization: continuous and discrete models | 0.405 | 1 | 1 | 100% |
| 6 | Borenstein, S., Cameron, A. C., and Gilbert, R (1997) Do gasoline prices respond asymmetrically to crude oil price changes? | 0.405 | 1 | 1 | 100% |
| 7 | Eaton, J. and Kortum, S (2002) Technology, geography, and trade | 0.405 | 1 | 1 | 100% |
| 8 | Eckert, A. and West, D. S (2004) Retail gasoline price cycles across spatially dispersed gasoline stations | 0.405 | 1 | 1 | 100% |
| 9 | Fajgelbaum, P. D. and Schaal, E (2017) Optimal transport networks in spatial equilibrium | 0.405 | 1 | 1 | 100% |
| 10 | Gale, D. and Shapley, L. S (1962) College admissions and the stability of marriage | 0.405 | 1 | 1 | 100% |
Showing the top 10 of 13 scored citations. 1 of these could not be matched to a bibliography entry, so only the citation key is shown.