It is known that prices only cannot usually be utilized to coordinate a linear economic system. This paper considers a linear economic system, formally represented as a linear programming model which is interpreted as a resource-allocation problem. An algorithm founded on the idea of associating with each resource a linearly increasing price schedule rather than a constant price is developed. The paper hence demonstrates that a mechanism rather similar to a pure price mechanism can be used both to find and sustain an optimal allocation of resources in a linear economic system.
MLA
Jennergren, Peter. “A Price Schedules Decomposition Algorithm for Linear Programming Problems.” Econometrica, vol. 41, .no 5, Econometric Society, 1973, pp. 965-980, https://www.jstor.org/stable/1913817
Chicago
Jennergren, Peter. “A Price Schedules Decomposition Algorithm for Linear Programming Problems.” Econometrica, 41, .no 5, (Econometric Society: 1973), 965-980. https://www.jstor.org/stable/1913817
APA
Jennergren, P. (1973). A Price Schedules Decomposition Algorithm for Linear Programming Problems. Econometrica, 41(5), 965-980. https://www.jstor.org/stable/1913817
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