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<p>We consider a spatially distributed market of a homogeneous good with different types of constraints on the flows between producers and consumers. Motivated by applied market research, we are interested in what we call minimum and maximum floor prices, i.e. the minimum and maximum prices that support the distribution of a good under certain rationality conditions for producers. These prices can be interpreted as the ones ensuring the stable functioning of the market and are of great interest for market analysts. In this paper, we establish several properties of minimum and maximum floor prices. We propose algorithms computing them and prove the finiteness of these algorithms under certain conditions.</p>

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Floor prices for spatially distributed markets

  • 期刊论文

  • 发表日期：

    2025年1月3日

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  • Nikolay Pilnik,
  • Stanislav Radionov,
  • Ilya Tipunin

摘要

We consider a spatially distributed market of a homogeneous good with different types of constraints on the flows between producers and consumers. Motivated by applied market research, we are interested in what we call minimum and maximum floor prices, i.e. the minimum and maximum prices that support the distribution of a good under certain rationality conditions for producers. These prices can be interpreted as the ones ensuring the stable functioning of the market and are of great interest for market analysts. In this paper, we establish several properties of minimum and maximum floor prices. We propose algorithms computing them and prove the finiteness of these algorithms under certain conditions.