IDEAS home Printed from https://ideas.repec.org/p/iim/iimawp/wp01498.html
   My bibliography  Save this paper

The Marginal Unit Shadow Price and its relationship to the Average Shadow Price

Author

Listed:
  • Mukherjee, Saral
  • Chatterjee Ashis K

Abstract

The economic significance of the average shadow price for integer and mixed integer programming problems has been established by researchers (Kim and Cho 1988), (Crema 1995). In this paper we introduce the concept of the marginal unit shadow price to deal with the integer programs where the right hand side resource availability can only be varied in discrete steps. We show that for integer programs, a sufficient condition for the marginal unit shadow price to equal the average shadow price is that the Law of Diminishing Returns should hold. The polyhedral structures that will guarantee this equivalence have been explored. Identification of the problem classes for which the equivalence holds greatly simplifies the existing procedure for determining shadow price for such integer programs.

Suggested Citation

  • Mukherjee, Saral & Chatterjee Ashis K, 2003. "The Marginal Unit Shadow Price and its relationship to the Average Shadow Price," IIMA Working Papers WP2003-06-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
  • Handle: RePEc:iim:iimawp:wp01498
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:wp01498. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/eciimin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.