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Endogenous Input Prices in Linear Programming Models

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  • Peter B. R. Hazell

Abstract

This paper provides a method for formulating linear programming models in which one or more factors have upward sloping supply schedules, and the prices of these factors are to be endogenously determined at either their competitive market equilibrium values or at the levels set by a monopsonist. The method for achieving these results utilizes the sum, over the relevant factor markets, of the producers' and consumers' surplus, and is an extension of existing methods for solving price endogenous models of product markets.

Suggested Citation

  • Peter B. R. Hazell, 1979. "Endogenous Input Prices in Linear Programming Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(3), pages 476-481.
  • Handle: RePEc:oup:ajagec:v:61:y:1979:i:3:p:476-481.
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    File URL: http://hdl.handle.net/10.2307/1239433
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    Cited by:

    1. McCarl, Bruce A., 1992. "Mathematical Programming For Resource Policy Appraisal Under Multiple Objectives," Working Papers 11888, Environmental and Natural Resources Policy Training Project.

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