Document Type
Discussion Paper
Publication Date
11-1-1989
CFDP Number
930
CFDP Pages
26
Abstract
The paper discusses the analogy between economic institutions and algorithms for the solution of mathematical programming problems. The simplex method for solving linear programs can be interpreted as a search for market prices that equilibrate the demand for factors of production with their supply. An interpretation in terms of the internal organization of the large firm is offered for Lenstra’s integer programming algorithm.
Recommended Citation
Scarf, Herbert E., "Mathematical Programming and Economic Theory" (1989). Cowles Foundation Discussion Papers. 1173.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1173