Article ID: | iaor20021423 |
Country: | China |
Volume: | 29 |
Issue: | 5 |
Start Page Number: | 540 |
End Page Number: | 544 |
Publication Date: | Oct 2000 |
Journal: | Journal of University of Electronic Science and Technology of China |
Authors: | Tang Xiaowo, Yang Guiyuan |
Keywords: | allocation: resources |
Based on the dual principle of linear programming, this paper discusses the economic significance of shadow price, corrects the error that interprets the dual variables as shadow profit, and analyses the factors that influence shadow price. The function of shadow price in resource allocation is also proposed.