Mathematics – Optimization and Control
Scientific paper
2010-01-28
Applied Mathematics and Optimization. Vol. 62, Issue 2 (2010), 229 - 252
Mathematics
Optimization and Control
20 pages, 6 figures
Scientific paper
This paper shows that a well designed transport system has an embedded exchange value by serving as a market for potential exchange between consumers. Under suitable conditions, one can improve the welfare of consumers in the system simply by allowing some exchange of goods between consumers during transportation without incurring additional transportation costs. We propose an explicit valuation formula to measure this exchange value for a given compatible transport system. This value is always nonnegative and bounded from above. Criteria based on transport structures, preferences and prices are provided to determine the existence of a positive exchange value. Finally, we study a new optimal transport problem with an objective taking into account of both transportation cost and exchange value.
Xia Qinglan
Xu Shaofeng
No associations
LandOfFree
The Exchange Value Embedded In A Transport System does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.
If you have personal experience with The Exchange Value Embedded In A Transport System, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and The Exchange Value Embedded In A Transport System will most certainly appreciate the feedback.
Profile ID: LFWR-SCP-O-255546