Marginal price

From Glossary

Jump to: navigation, search

The rate at which the optimal objective value changes with respect to a perturbation of a right-hand side, like a supply, demand or capacity limit. When it exists, the marginal price is often equal to a most pessimistic dual price (e.g., consumer's marginal price is the greatest dual price, which reflects what another unit of demand would cost to satisfy).

Personal tools