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THE EFFECTS OF DEGENERACY ON COST‐COEFFICIENT RANGES AND AN ALGORITHM TO RESOLVE INTERPRETATION PROBLEMS
Author(s) -
Knolmayer Gerhard
Publication year - 1984
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1984.tb01193.x
Subject(s) - degeneracy (biology) , degenerate energy levels , shadow (psychology) , shadow price , interpretation (philosophy) , local optimum , mathematical optimization , computer science , algorithm , mathematics , physics , psychology , bioinformatics , quantum mechanics , psychotherapist , biology , programming language
The problems of determining valid shadow prices and of performing a valid sensitivity analysis for managerial purposes are considered. For primal degenerate optima, earlier results on finding shadow prices are used to propose a clear and efficient method for finding valid cost‐coefficient ranges. An example is used to demonstrate how managerial information can be obtained at degenerate optima.