| Article ID: | iaor2003877 |
| Country: | United Kingdom |
| Volume: | 17 |
| Issue: | 3 |
| Start Page Number: | 493 |
| End Page Number: | 504 |
| Publication Date: | May 2002 |
| Journal: | Optimization Methods & Software |
| Authors: | Flm Sjur Didrik |
| Keywords: | programming: probabilistic |
Stochastic programming offers handy instruments to analyze exchange of goods and risks. Absent efficient markets for some of those items, such programming may imitate or synthesize market-like transfers among concerned parties. Specifically, using shadow prices (Lagrange multipliers) on aggregate endowments, one may identify side-payments that yield core solutions to cooperative production games.