AN ALGORITHM FOR THE MULTIPERIOD MARKET EQUILIBRIUM-MODEL WITH GEOMETRIC DISTRIBUTED LAG DEMAND

This paper presents a new equilibrium-seeking algorithm, called the de coupling algorithm, for calculation of multiperiod equilibrium of supp lies and demands when demand has a geometric distributed lag (GDL) str ucture and supply is represented by a linear process submodel. The new algorithm is required because it may be difficult to obtain the equil ibrium by a diagonalization algorithm such as PIES. In each step of th e decoupling algorithm, a modified GDL equilibrium model, the ''decoup led submodel,'' is solved by the PIES algorithm; successive approximat ions move closer to the true equilibrium. Two versions of a large-scal e realistic model of North American energy supplies and demands are so lved with the decoupling algorithm to aid in understanding the behavio r of the decoupling algorithm.