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...

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, Resou...

CCS (carbon dioxide capture and storage) is an issue which has received increasing attention in the debate on climate change over the last several years because of its relative technical simplicity and very large potential in reducing carbon dioxide emissions. The absence of secondary benefits and uncertainties associated with this approach, however, would require analysts to conduct fine costb...

A managed-care company must decide on allocating resources of many services to many groups of enrollees. The profit-maximizing allocation rule is characterized. For each group, the marginal utilities across all services are equalized. The equilibrium has an enrollee group shadow price interpretation. The equilibrium spending allocation can be implemented by letting utilitarian physicians decide...

In this appendix we provide more extensive proofs of results in the main paper. In particular we explicitly prove results that are direct adaptations of arguments from Atkeson and Lucas (1995) and hence omitted in the main paper We also provide a detailed discussion of the algorithm used in the quantitative exercises of the main papers. 1 Proofs1 1.1 Optimal Policies Induce E¢cient Allocations ...

Interactions with sea turtles have occurred at an alarming rate in swordfish longlining in Hawaii in recent years and various regulations have been put forward to protect sea turtles. In order to understand the cost of reducing sea turtle interactions, methods have been developed to derive the shadow price of sea turtle bycatch based on fisher's welfare loss from a specific regulation. This pap...

Malta, like many other countries, is faced with the problem of sustaining the coverage and quality of the services offered by its public health system in the face of a rapid rise in health care costs. Within this context, local public health services must undergo the necessary transformation in order to meet future needs, expectations and demands of health care consumers. The aim of this paper ...

In the preceding chapter on sensitivity analysis, we saw that the shadow-price interpretation of the optimal simplex multipliers is a very useful concept. First, these shadow prices give us directly the marginal worth of an additional unit of any of the resources. Second, when an activity is ‘‘priced out’’ using these shadow prices, the opportunity cost of allocating resources to that activity ...

How does a boundedly rational optimizing agent make decisions? Can such an agent learn to behave rationally? We address these questions in a standard regulator environment. Our behavioral primitive is anchored to the shadow price of the state vector. The regulator forecasts the value of an additional unit of the state tomorrow, and uses this forecast to choose her control. The value of the cont...