Following the standard analysis of Armington functions, changing import demand and supply is a function of change in relative prices, demand and substitution elasticities, supply constraints and trade shares (Minor and Tsigas 2008).
The FMP is a mathematical programming model where the flexibility of the target values of the objective, the elasticity of the constraints, the parameters in either the objective or the constraints are quantified as fuzzy numbers.
Thus, the elasticity of the constraints and the flexibility of the target values in the objective function can be quantified.
Compared with FFP, the FRP can hardly tackle the elasticity of the constraints and the flexibility of the target values in the objective function.
Maximization of the smallest eigenfrequency of the linearized elasticity system with area constraint is investigated.
In this paper, we provide new evidence regarding the pass-through of diesel and gasoline taxes to prices, and how the estimated pass-through depends on a variety of supply conditions including a measure of state residual supply elasticity, and refinery and inventory constraints.
Motivated by the above analysis, in this paper, we adopt a realistic demand model based on price elasticity including relevant market behavior constraints to be use in the pricing optimization model.
By examining heatmaps of portfolio characteristics derived by perturbing constraints with commensurable elasticities, it offers insights into trade-offs associated with modifying constraint bounds.
The main reason for the success of the TL is its flexible functional form which does not impose any prior constraints on the elasticities.
This is mainly due to the lack of market behavior constraints between the elasticities, which can lead to incorrect demand modelling where higher market prices lead to higher usages.
A couple of illustrative numerical examples in 2D elasticity with eigenfrequencies as their either constraints or objective functions are presented to demonstrate the high performance of the proposed methodology.
