Generalized average shadow prices and bottlenecks
نویسنده
چکیده
We present a generalization of the average shadow price in 0-1-Mixed Integer Linear Programming problems and its relation with bottlenecks including the analysis relative to the coefficients matrix of resource constraints. A mathematical programming approach to find the strategy for investment in resources is presented. KeywordsMixed Integer programming, Average shadow price, Bottlenecks, Resource Constraints
منابع مشابه
Shadow Prices of SO2 Abatements for Regions in China
We use the linear programming approach to examine the overall macroeconomic performance and compute shadow prices of SO2 emission abatements for thirty regions in China during the 1996-2002 period. Our major findings are as follows: On average, the east is the most efficient and the west is the most inefficient during these seven years. The average efficiency of those regions with serious acid ...
متن کاملRANKING DMUS ON THE BENCHMARK LINE WITH EQUAL SHADOW PRICES
Data envelopment analysis (DEA) with considering the best condition for each decision making unit (DMU) assesses the relative efficiency for it and divides a homogenous group of DMUs in to two categories: efficient and inefficient, but traditional DEA models can not rank efficient DMUs. Although some models were introduced for ranking efficient DMUs, Franklin Lio & Hsuan peng (2008), proposed a...
متن کاملShadow prices of air pollutants in Czech industries: A convex nonparametric least squares approach
The paper estimates the shadow prices of SO2 emissions for 36 Czech industry sectors during the period 2000-2008. A convex nonparametric least squares quadratic optimization formulated by Mekaroonreung & Johnson (2012) is applied to measure technical efficiency and to jointly estimate the shadow prices of SO2 emissions. The weighted average shadow price ranges between 360€ and 1,316€ per ton of...
متن کاملUnified Concept of Bottleneck
The term ‘bottleneck’ has been extensively used in operations management literature. Management paradigms like the Theory of Constraints focus on the identification and exploitation of bottlenecks. Yet, we show that the term has not been rigorously defined. We provide a classification of bottleneck definitions available in literature and discuss several myths associated with the concept of bott...
متن کاملFarmers’ Subjective Valuation of Subsistence Crops: the Case of Traditional Maize in Mexico
Subsistence farmers may not respond to market incentives if their resource allocation decisions are based on shadow prices. This may lead to “puzzling” results from an economic point of view if shadow prices are not taken into account. Subsistence maize farmers in rural Mexico are an example with their non-response to decreasing maize prices after NAFTA. I analyze the true value measure of maiz...
متن کامل