Quantity Adjustments in Resource Allocation: A Statistical Interpretation
HARVARD UNIV CAMBRIDGE MA
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One method of successive approximations to a constrained optimum maintains feasibility while adjusting the decision variables along the gradient of the Lagrangian. Then the adjustments can be found as the residuals in the regression of the partial derivatives of the objective function on the partial derivatives of the constraint functions. Implications for decentralization are discussed.
- Economics and Cost Analysis
- Operations Research