rie w.p. P1 r2e2 w.p. P2 Rt R₁ = Tnen w.p. Pn 0 w.p. 1-1 Pj Let DER be a vector with components Dj value of the program max ry, = ER/ Show that the optimal s.t. Ayx, 0≤ y ≤D, with variable y = R is equal to JH (x). In addition, the optimal dual solution of the capacity constraints of the previous deterministic linear program is an optimal solution of the problem minμ20 (x).
rie w.p. P1 r2e2 w.p. P2 Rt R₁ = Tnen w.p. Pn 0 w.p. 1-1 Pj Let DER be a vector with components Dj value of the program max ry, = ER/ Show that the optimal s.t. Ayx, 0≤ y ≤D, with variable y = R is equal to JH (x). In addition, the optimal dual solution of the capacity constraints of the previous deterministic linear program is an optimal solution of the problem minμ20 (x).
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
Problem 2.15P
Related questions
Question
Consider the network revenue management model. Suppose that the fare prices are constant (deterministic), that is they are as shown in the first image below of Rt. Let D ∈ ℝ^n be a vector with components Dj = E[t=1 to T∑(Rt,j/rj)]. Show that the optimal value of the program with variable y ∈ ℝ^n is equal to the optimal bid-
max (r^⊺)y,
s.t. Ay ≤ x,
0 ≤ y ≤ D
Transcribed Image Text:rie
w.p. P1
r2e2
w.p. P2
Rt
R₁ =
Tnen w.p. Pn
0
w.p. 1-1 Pj
Transcribed Image Text:Let DER be a vector with components Dj
value of the program
max ry,
=
ER/ Show that the optimal
s.t. Ayx,
0≤ y ≤D,
with variable y = R is equal to JH (x). In addition, the optimal dual solution of the capacity
constraints of the previous deterministic linear program is an optimal solution of the problem
minμ20 (x).
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