Econometrica: Jan 1951, Volume 19, Issue 1
Equilibrium among Spatially Separated Markets: Solution by Electric Analogue
Stephen EnkeA simple electric circuit is described that determines the equilibrium prices and quantities that will result in a static model when a number of interdependent trading units stand ready to buy or sell a homogeneous good, according to known trading functions, and when there are significant freight costs per unit between each trading unit and every other. This circuit is compared as a method of solution with digital computers and electronic differential analyzers. The importance of these possibilities to traditional value theory is indicated.
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