MODIFICATIONS OF EVANS PRICE EQUILIBRIUM MODEL
Serhii Zabolotnii
Cherkasy State Business-College (Ukraine)
http://orcid.org/0000-0003-0242-2234
Sergii Mogilei
sergiymogiley@gmail.comRauf Ablyazov East European University (Ukraine)
http://orcid.org/0000-0002-9296-6827
Abstract
The paper regards the classical Evans price equilibrium model in the free product market in the aspect of regarding the opportunities for expanding (modifying) the model given that is aimed at perfecting the accuracy of its mathematical formulating. As an accuracy criterion, we have chosen a summary quadratic deviation of the calculated indices from the given ones. One of the approaches of modifying the basic Evans model is suggesting there is a linear dependence between price function and time as well as its first and second derivatives. In this case, the model will be described through differential equation of second order with constant coefficients, revealing some oscillatory process. Besides, it is worth regarding a non-linear (polynomial) dependence between demand, supply and price. The paper proposes mathematical formulating for the modified Evans models that have been approbated for real indices of exchange rates fluctuations. It also proves that increase of the differential and/or polynomial order of the given model allows its essential accuracy perfection. Besides, the influence of arbitrary restricting circumstances of the model on its accuracy
is regarded. Each expanded Evans model is accompanied by mathematically formulated price and time dependence.
Keywords:
Evans model, market equilibrium, equilibrium price, differential equations, market modellingReferences
Almeida Prado F. P., Blavatskyy P.: Existence and uniqueness of price equilibrium in oligopoly model with power demand. Mathematical Social Sciences 111, 2021, 1–10 [http://doi.org/10.1016/j.mathsocsci.2020.12.004].
DOI: https://doi.org/10.1016/j.mathsocsci.2020.12.004
Google Scholar
Dilenko V. O., Tarakanov N. L.: Mathematical Modeling of the Equilibrium Price Formation Taking into Account the Logistic Factor. Business Inform 7, 2020, 125–130 [http://doi.org/10.32983/2222-4459-2020-7-125-130].
DOI: https://doi.org/10.32983/2222-4459-2020-7-125-130
Google Scholar
Duong Tung Nguyen et al.: Price-Based Resource Allocation for Edge Computing: A Market Equilibrium Approach. IEEE Transactions on Cloud Computing 9(1), 2021, 302–317 [http://doi.org/10.1109/TCC.2018.2844379].
DOI: https://doi.org/10.1109/TCC.2018.2844379
Google Scholar
Fujii M., Takahashi A.: Equilibrium Price Formation with a Major Player and its Mean Field Limit. ESAIM: Control, Optimization and Calculus of Variations 28, 2022, 21 [http://doi.org/10.1051/cocv/2022015].
DOI: https://doi.org/10.1051/cocv/2022015
Google Scholar
Ji-Huan He et al.: Evans model for dynamic economics revised. AIMS Mathematics 6(9), 2021, 9194–9206 [http://doi.org/10.3934/math.2021534].
DOI: https://doi.org/10.3934/math.2021534
Google Scholar
Konnov I.: Variational Inequality Type Formulations of General Market Equilibrium Problems with Local Information. Journal of Optimization Theory and Applications 188(2), 2021, 332–355 [http://doi.org/10.1007/s10957-020-01777-9].
DOI: https://doi.org/10.1007/s10957-020-01777-9
Google Scholar
Krebsab V., Schmidt M.: Uniqueness of market equilibria on networks with transport costs. Operations Research Perspectives 5, 2018, 169–173 [http://doi.org/10.1016/j.orp.2018.05.002].
DOI: https://doi.org/10.1016/j.orp.2018.05.002
Google Scholar
Kroer C. et al.: Computing Large Market Equilibria Using Abstractions. Operations Research 70(1), 2022, 329–351 [http://doi.org/10.1287/opre.2021.2163].
DOI: https://doi.org/10.1287/opre.2021.2163
Google Scholar
Lin Liu, X. Henry Wang: Product differentiation and equilibrium price with partial product search. Economics Letters 205, 2021 [http://doi.org/10.1016/j.econlet.2021.109932].
DOI: https://doi.org/10.1016/j.econlet.2021.109932
Google Scholar
Llull J.: Immigration, Wages, and Education: A Labour Market Equilibrium Structural Model. The Review of Economic Studies 85(3), 2018, 1852–1896 [http://doi.org/10.1093/restud/rdx053].
DOI: https://doi.org/10.1093/restud/rdx053
Google Scholar
Przystupa K. et al.: Constructing Reference Plans of Two-Criteria Multimodal Transport Problem. Transport and Telecommunication 22(2), 2021, 129–140 [http://doi.org/10.2478/ttj-2021-0010].
DOI: https://doi.org/10.2478/ttj-2021-0010
Google Scholar
https://bank.gov.ua/ua/markets/exchangerate-chart?cn%5B%5D=USD (available: 05.01.2023).
Google Scholar
Authors
Serhii ZabolotniiCherkasy State Business-College Ukraine
http://orcid.org/0000-0003-0242-2234
Authors
Sergii Mogileisergiymogiley@gmail.com
Rauf Ablyazov East European University Ukraine
http://orcid.org/0000-0002-9296-6827
Statistics
Abstract views: 154PDF downloads: 158
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Most read articles by the same author(s)
- Serhii Zabolotnii, Artem Honcharov, Sergii Mogilei, FACTOR ANALYSIS METHOD APPLICATION FOR CONSTRUCTING OBJECTIVE FUNCTIONS OF OPTIMIZATION IN MULTIMODAL TRANSPORT PROBLEMS , Informatyka, Automatyka, Pomiary w Gospodarce i Ochronie Środowiska: Vol. 11 No. 4 (2021)
- Serhii Zabolotnii, Sergii Mogilei, APPLICATION OF THE MATRIX FACTOR ANALYSIS METHOD FOR DETERMINING PARAMETERS OF THE OBJECTIVE FUNCTION FOR TRANSPORT RISK MINIMIZATION , Informatyka, Automatyka, Pomiary w Gospodarce i Ochronie Środowiska: Vol. 11 No. 1 (2021)
