Pairwise reactive SOR algorithm for quadratic programming of net import spatial equilibrium models (Q1118531)

A method called ``pairwise reactive successive overrelaxation'' is proposed to solve the net import spatial price equilibrium problem which is formulated as a convex quadratic program of the form: maximize \(\Sigma_ i(q_ iz_ i-m_ iz^ 2_ i)\) s.t. \(z_ j-z_ i\leq c_{ij}\) \((i,j=1,...,n)\), \(z_ i\geq 0\) \((i=1,...,n)\). The method is a dual based solution procedure which solves the problem by updating the values of all possible pairs of variables several times at each iteration. The Lagrange multipliers corresponding to the constraints (which in the context are precisely the interregional commodity flows) do not have to be calculated at each iteration but can easily be derived from the solution values.