ABSTRACT
An iterative solution method and sensitivity analysis are considered for a multi-product, multi-regional, spatial equilibrium problem. Nonlinear supply and demand functions are treated via successive linear approximations. Both the sensitivity analysis and the iteration convergence are based upon a solvability lemma, which guarantees that a solution of the equilibrium conditions may be expressed in terms of the problem data. Convergence of the iterative method is also proved by relating the equilibrium conditions to a nonlinear complementarity problem.
