Average shadow price in a Mixed Integer Linear Programming problem

Average shadow price in a Mixed Integer Linear Programming problem

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Article ID: iaor19981890
Country: Netherlands
Volume: 85
Issue: 3
Start Page Number: 625
End Page Number: 635
Publication Date: Sep 1995
Journal: European Journal of Operational Research
Authors:
Keywords: Lagrangean relaxation
Abstract:

Recently a new concept of shadow price, the average shadow price, based on the average and not on the marginal contribution of a resource, has been developed for pure Integer Linear Programming problems. In this paper we prove that average shadow prices can be used in a Mixed Integer Linear Programming problem and that some of its properties are analogous with the properties of shadow prices in a Linear Programming problem. A natural link with the right-hand-side parametric problem leads us to a proof of completeness for parametric analysis.

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