A note on spatial and temporal price and allocation modeling: Quadratic programming or linear complementary programming?

Abstract This paper presents a clarification of the specific conditions under which the linear complementary programming (LCP) formulation, instead of the quadratic programming (QP) formulation, is applicable in such areas as spatial and temporal price and allocation modeling. An important condition for the use of the LCP formulation is that the coefficient matrix of the demand and/or supply functions is asymmetric. Dynamic formulations can be treated as a LCP but it is demonstrated that the problem can be reformulated in a standard QP format.

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