Questions tagged [linear-programming]

Linear programming (also called linear optimization) is a method to achieve the best outcome (such as maximum profit or lowest cost) in a mathematical model whose requirements are represented by linear relationships. Linear programming is a special case of mathematical programming (mathematical optimization).

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2answers
143 views

Resources to derive economic forecasts

What publicly available resources are there, with sample code, that can be used to build my own macroeconomic model? A search on Github shows that some people have posted code, but I think we can do ...
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0answers
30 views

Market clearing price and dual variables in auctions

Suppose the allocation of an auction (or a market) is defined by the solution of a linear program. Then it is known that the associated clearing price is given by the dual variable associated to the ...
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0answers
85 views

Conic optimization in economics

Are there any mainstream economic models that rely on conic optimization to solve for decision variables? Conic optimization is a type of convex optimization problem, different from linear and ...
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0answers
9 views

Algorithms/Models to solve minimal Matchings for consumer producer household pairs

I’m working on the following problem: Minimising the electricity price for household trading pairs. There’s producer and consumer households. Trades are just possible between producers and consumers. ...
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0answers
25 views

Simplex Lp interpretation of dual problem´s solution

I am wondering whether my interpretation of my simplex dual problem result is correct. The primal problem is: ...
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2answers
424 views

Corner solution of the maximization problem

Answer Hello, I upload the actual question with my 8-pages answer. Please can you check it. Is there a corner dissolution for $c=\gamma$. Please share your ideas. Thanks.
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1answer
157 views

A profit maximization problem (whole problem has been solved, I just have question about interpretation)

I would like to discuss with you about the following production function. $$y=f(t_m, t_l)=\rho t_m^m(n+t_l)$$ where $0<m<1 $ and $n>0$ are fixed parameters. $t_m$ is manager time. $t_l$ ...
2
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1answer
370 views

Linear programming, shadow price range

I'm not sure how to determine the range for which a shadow price is valid. You might be able to skip straight to the question here. I've been introduced to it using the following approach in 2D. ...
3
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1answer
207 views

Has this differential calculus inequality approach to optimizing the production possibility curve exist?

I just started micro-economics at my community college and my teacher mentioned the derivative of the PPF for two output resources. I thought about it a while and came up with this approach. Some of ...
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1answer
67 views

What is the interpretation of the output matrix of pivoting?

I have the following matrix: $$A= \begin{bmatrix} 1 & 2 & 3 \\ 2 & 3 & 4 \end{bmatrix}$$ After pivoting, I got this matrix: $$B= \begin{bmatrix} 1 & 2 & 3 \\ ...
5
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1answer
132 views

How to write the dual problem of this maximization problem?

On this note for Shapley-Shubik model, there's a maximization problem: $$\max_{x_{ij} \in \mathbb{R}^{M \times N}}\sum_{j \in N}\sum_{i \in M}v_{ij}x_{ij}$$ $$\text{s.t.} \ \sum_{j \in N}x_{ij} \...
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0answers
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Optimisation of bonds

I'm doing an optimisation problem but don't understand what the terms mean. Suppose someone wants to invest $110,000. They have 4 choices as to what they invest their money into: municipal bond ...
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1answer
2k views

First Order Condition for Profit Maximization in Gambling Industry

I am working on a model of optimal payout percentages in the gambling industry. Because the nominal price of a \$1 ticket is always \$1, we use an effective price strategy where Q = \$1 in won ...