Dynamic Equilibrium Model for Spatial Auction Markets*

Spatial equilibrium models are utilized for description of behavior and for management of complex systems containing many interacting elements, with taking into account their spatial distribution. We consider such a system of auction markets joined by transmission lines subject to joint balance and capacity flows constraints for a certain time period propose a primal-dual system of variational inequalities whose solutions yield an equilibrium trajectory of this system. A splitting type method is proposed to find a solution.