Shadow prices in linear programs

Author

Darren A. Smith

Date of Award

12-1987

Degree Type

Thesis

Degree Name

Master of Science

Major

Management Science

Major Professor

James K. Ho

Abstract

It is well known that in linear programming, the optimal values of the dual variables can be interpreted as shadow prices (marginal values) of the right-hand-side coefficients. However, this is true only under nondegeneracy assumptions. Since real problems are often degenerate, the output from conventional LP software regarding such marginal information can be misleading. This thesis surveys and generalizes known results in this topic and demonstrates how true shadow prices can be computed with or without modification to existing software.

Recommended Citation

Smith, Darren A., "Shadow prices in linear programs. " Master's Thesis, University of Tennessee, 1987.
https://trace.tennessee.edu/utk_gradthes/13589