Shadow Price
Shadow Price
Duality
Economic Value
Linear Programming
Shadow Price or Duality
n
• subject to a ij x j b i , i 1,2,..........m
j1
4. The objective coefficients of the dual equal the right hand side
of the primal constraint equations.
Rules for formulation
Primal Variables
x1 x2 xj xn
Dual
Variables c1 c2 cj cn
y1 a11 a12 a1j a1n b1
y2 a21 a22 a2j a2n b2
ym am1 am2 amj amn bm
jth Dual Dual
constraint objective
Standard primal Dual Problem
problem objective objective constraint variable sign
Maximization Minimization ≥ unrestricted
Minimization Maximization ≤ unrestricted
Economic Interpretation