Joint Production Shadow Prices and the Three Optima Theorem
So far we have only examined an initial link between CP and standard utility, focused on approximating the utility optimum on the opportunity set. The analysis has been restricted to bi-attribute utility functions that lead to the bounding of the optimum without the need to determine the form and parameters of the utility map. We postpone until Chapter 8 the analysis of a further CP-utility linkage extended to multi-attribute utility functions. In Chapter 8 we will search for the specification of these functions as a previous step toward their maximisation.
KeywordsMarket Price Maximum Profit Shadow Price Joint Production Multiple Criterion Decision
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