to measure an unbiased farm-specific efficiency of individual dairy farmers, a shadow-price profit frontier adjusted for market distortion was applied to a sample of 860 iranian small intensive dairy farms surveyed in 2005-2006. this measure was then compared with that of unadjusted measure that assumes undistorted market. a multiple general linear model (glm) technique was applied to the data ...

In manufacturing institutes the only access way to maximum profit is identifying the production mix of the products based on the limitations such as policies and politics, demand and production processes. This study identifies the constraints of a tile-manufacturing company including constraints in its production and demand line using LINGO software version 15, and identifying production bottle...

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...

Health plans paid by capitation have an incentive to distort the quality of services they offer to attract profitable and to deter unprofitable enrollees. We characterize plans' rationing as a "shadow price" on access to various areas of care and show how the profit maximizing shadow price depends on the dispersion in health costs, individuals' forecasts of their health costs, the correlation b...

T single-product firms with different quality levels and fixed limited capacities engage in sequential price competition in an essentially deterministic model where customers have heterogeneous valuations for both products. We develop conditions under which the leader (she) can take strategic advantage of her limited capacity by pricing relatively low, purposefully creating shortages and leavin...

Focus is here on coalitional games among economic agents plagued by aggregate pollutions of diverse sorts. Defecting players presumably pollute more than others. Then, granted convex preferences and technologies, the core is proven nonempty. In fact, under natural assumptions, a specific, computable core solution comes in terms of shadow prices on the said aggregates. Such prices may, in large ...

For portfolio choice problems with proportional transaction costs, we discuss whether or not there exists a shadow price, i.e., a least favorable frictionless market extension leading to the same optimal strategy and utility. By means of an explicit counter-example, we show that shadow prices may fail to exist even in seemingly perfectly benign situations, i.e., for a log-investor trading in an...

To measure an unbiased farm-specific efficiency of individual dairy farmers, a shadow-price profit frontier adjusted for market distortion was applied to a sample of 860 Iranian small intensive dairy farms surveyed in 2005-2006. This measure was then compared with that of unadjusted measure that assumes undistorted market. A multiple general linear model (GLM) technique was applied to the data ...