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Note---Sensitivity Analysis in Leontief Substitution Systems

Author

Listed:
  • Gary J. Koehler

    (Micro Data Base Systems and Purdue University)

  • Andrew B. Whinston

    (Micro Data Base Systems and Purdue University)

Abstract

In this note we investigate extremal optimization over Leontief substitution systems. Such problems arise naturally in discounted Markov decision problems and in problems involving the control of economic systems. We develop both bounds on the objective value of a Leontief substitution system subject to perturbations and an algorithm for finding and improving perturbations.

Suggested Citation

  • Gary J. Koehler & Andrew B. Whinston, 1980. "Note---Sensitivity Analysis in Leontief Substitution Systems," Management Science, INFORMS, vol. 26(12), pages 1272-1280, December.
  • Handle: RePEc:inm:ormnsc:v:26:y:1980:i:12:p:1272-1280
    DOI: 10.1287/mnsc.26.12.1272
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    Cited by:

    1. Ang, Marcus & Song, Jing-Sheng & Wang, Mingzheng & Zhang, Hanqin, 2013. "On properties of discrete (r, q) and (s, T) inventory systems," European Journal of Operational Research, Elsevier, vol. 229(1), pages 95-105.

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    Keywords

    programming: Leontief substitution;

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