Since the publication of the first edition of Network Economics: A
Variational Inequality Approach in 1993, there have been many ad- vances
in both methodological developments, as well as, applications in this
field. These have occurred in an environment of an increasingly
networked global economy, in which the importance of transportation
networks and communication networks is now well-recognized, with net-
works such as knowledge networks, environmental networks, and finan-
cial networks receiving growing attention. This edition adds recent
research progress in new and evolving ar- eas of network economics
through common and unifying principles. In addition, it includes dynamic
models of traffic, of spatially separated markets, of oligopolistic
markets, and of financial markets. In order to expand the range and
reach of this material, we have also included a series of problems in an
appendix for self-study purposes and for use in the classroom. We note
that computational economics has been at the forefront in stimulating
the development of mathematical methodologies for the analysis and
solution of complex, large-scale problems. The past fifteen years, in
particular, have witnessed a dramatic growth of interest in this area.
Supported by the increasing availability of data and by advances in
computer architectures, the scale and dimensions of problems that can
now be handled are unveiling new horizons in both theoretical modeling
and policy analysis.
