Mathematical Programming and Economic Theory
Operations Research · 1990 · Volume 38 · Issue 3
Abstract
This paper, which is based on the remarks offered during a plenary address at the May 1989 CORS/TIMS/ORSA meeting in Vancouver, discusses the analogy between economic institutions and algorithms for solving 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. A possible interpretation in terms of the internal organization of a large firm is offered for Lenstra's integer programming algorithm.
Keywords
programming, mathematical: the relationship between algorithms and economic institutions
Enable JavaScript for citation tools and additional paper interactions.