What are shadow prices? Please describe the main caveats in their estimation. Under which conditions, shadow prices
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What are shadow prices? Please describe the main caveats in their estimation. Under which conditions, shadow prices can be computed as Lagrange multipliers of a constrained planning problem?
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Shadow prices also known as dual prices can be defined as theoretical prices or estimated price levels The shadow price of a good or resource reflects the value of that good or resource when used in i...View the full answer
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