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.