Congestion Pricing is a strategy based on a mathematical framework from optimization theory and economics. A congestion measure (shadow price) is computed at each network node and fed back to the sources. The sources adapt their rates according to a utility function and the aggregate price information. It can be shown that this will lead to a social optimum of the entire network while maintaini...

The purpose of this paper is to present some results about the determinants of book-loans from local public libraries in Norway. The investigation is based on quasi-demand functions where travel time, as an indicator of the shadow price of book-loans, average personal income, information on the book stock, and on other media available at the library, are main explanatory variables. We use panel...

We study a stochastic processing network, in which each job requires the concurrent occupancy of a subset of links (servers/resources), and each link’s capacity is shared among job classes that require its service. The real-time allocation of the service capacity among job classes is determined by the so-called “proportional fair” allocation scheme, which allocates the capacity among job classe...

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...

Core and peripheral contrasts in journey-to-work trip length can be interpreted as imputing the relative value of origin and destination accessibility (yielding theoretical proxies for rent and wages). Because the main variables are shown to be critically dependent on spatial structure, they may be interpreted as showing the shadow prices due to comparative location. There is also a unifying co...

By means of so-called virtual or shadow prices, short-run factor demands, short-run marginal costs, etc. can be derived from any long-run cost function. The traditional approach (short-run/restricted/conditional/variable cost functions) is criticized, and it is also shown that technological change, scale e!ects, etc. can be added to any cost function by means of disembodied factor-augmenting e$...

We analyze optimal protection when a benevolent government must maintain nonnegative domestic profits and when the domestic import-competing firm has private information about its costs. A costly audit mechanism can deter strategic manipulation of this private information. We show that a high-penalty/lowprobability of investigation is optimal when the shadow price of the firm profit is low comp...

Phenotype phase plane analysis is a linear optimization procedure which can be used to study the value of the objective function (a desired phenotype) as two variables (external substrates) vary simultaneously. Existing methods for phenotype phase plane analysis are based on computing shadow prices as defined in classical linear programming duality theory. Since different bases may produce diff...

We investigate the hypothesis that conditioning transfers to poor families on school attendance leads to a reallocation of household resources enhancing the human capital of the next generation, via the effect of the conditionality on the shadow price of human capital. We estimate the price effect of conditional transfers to mothers on intrahousehold allocations using data from a social program...

Carbon emission control becomes a challenge in recent years, and carbon emission trading is an effective way to curb carbon emission. This paper investigates the multi-item production planning problem with carbon cap and trade mechanism, in which a firm uses a common capacity and carbon emission quota to produce multiple products for fulfilling independent stochastic demands, and the firm can b...