The Variational Inequality Approach for Solving Spatial Auction Problems with Joint Constraints

We consider a problem of managing a system of spatially distributed markets under capacity and balance constraints and show that solutions of a variational inequality enjoy auction principle properties implicitly. This enables us to develop efficient tools both for derivation of existence and uniqueness results and for creation of solution methods.

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Kazan University, Kazan, March 23, 2007.

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