Mathematical Programming for Agricultural, Environmental, and Resource Economics

514 Pages·2012·6.66 MB·English

by  H. Kaiser

This page intentionally left blank
ffirs.qxd 11/29/10 8:21 PM Page i
MATHEMATICAL
PROGRAMMING FOR
AGRICULTURAL,
ENVIRONMENTAL,
AND RESOURCE
ECONOMICS
This page intentionally left blank
ffirs.qxd 11/29/10 8:21 PM Page iii
MATHEMATICAL
PROGRAMMING FOR
AGRICULTURAL,
ENVIRONMENTAL,
AND RESOURCE
ECONOMICS
HARRY M. KAISER
Cornell University
and
KENT D. MESSER
University of Delaware
John Wiley & Sons, Inc.
ffirs.qxd 11/29/10 8:21 PM Page iv
Vice President & Publisher George Hoffman
Acquisitions Editor Lacey Vitetta
Project Editor Jennifer Manias
Senior Editorial Assistant Emily McGee
Assistant Marketing Manager Diane Mars
Media Editor Greg Chaput
Production Manager Janis Soo
Assistant Production Editor Yee Lyn Song
Cover Designer Seng Ping Ngieng
Cover Photo Credit (sunflowers) Travel Library Limited/SuperStock; (turbines) Robert
Huberman/SuperStock; (boats) Axiom Photographic Limited/SuperStock;
(bear) James Urbach/SuperStock
This book was set in 10/12 Times Roman by MPS Limited, a Macmillan Company, and printed and bound by
Hamilton Printing Company. The cover was printed by Hamilton Printing Company.
This book is printed on acid free paper. (cid:1)
Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more
than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built
on a foundation of principles that include responsibility to the communities we serve and where we live and work.
In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, eco-
nomic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact,
paper specifications and procurement, ethical conduct within our business and among our vendors, and commu-
nity and charitable support. For more information, please visit our website: www.wiley.com/go/citizenship.
Copyright © 2011 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States
Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of
the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923,
website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions
Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, [phone], fax (201)748-
6008, website http://www.wiley.com/go/permissions.
Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their
courses during the next academic year. These copies are licensed and may not be sold or transferred to a third
party. Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and
a free of charge return shipping label are available at www.wiley.com/go/returnlabel. Outside of the United
States, please contact your local representative.
Library of Congress Cataloging-in-Publication Data
Kaiser, Harry Mason.
Mathematical programming for agricultural, environmental, and resource economics / Harry M. Kaiser,
Kent D. Messer.
p. cm.
Includes index.
ISBN 978-0-470-59936-5 (hardback)
1. Programming (Mathematics) 2. Nonlinear programming. 3. Evolutionary economics—
Mathematical models. I. Messer, Kent D. II. Title.
QA402.5.K25 2011
658.4'033—dc22
2010039902
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
In appreciation for their love and support,
we dedicate this book to our families
Kathy, Dylan, Ella, Elizabeth, and G.G. (Harry M. Kaiser)
and
Katherine, Madeline, and Eleanor (Kent D. Messer)
This page intentionally left blank
ftoc.qxd 11/29/10 8:21 PM Page vii
Brief Contents
Part 1 LINEAR PROGRAMMING 1
Chapter 1 INTRODUCTORY CONCEPTS AND THE GRAPHICAL APPROACH
TO LINEAR PROGRAMMING 2
Chapter 2 THE SIMPLEX METHOD TO SOLVING LINEAR PROGRAMMING
PROBLEMS 55
Chapter 3 SENSITIVITY ANALYSIS USING THE SIMPLEX METHOD AND DUALITY 88
Chapter 4 FARM-LEVEL LINEAR PROGRAMMING MODELS 135
Chapter 5 TRANSPORTATION AND ASSIGNMENT MODELS FOR FOOD AND
AGRICULTURAL MARKETS 173
Chapter 6 NATURAL RESOURCE AND ENVIRONMENTAL ECONOMICS
APPLICATIONS OF LINEAR PROGRAMMING 211
Part 2 RELAXING THE ASSUMPTIONS OF LINEAR
PROGRAMMING 247
Chapter 7 INTEGER AND BINARY PROGRAMMING 248
Chapter 8 OPTIMIZATION OF NONLINEAR FUNCTIONS 283
Chapter 9 GLOBAL APPROACHES TO NONLINEAR OPTIMIZATION 321
Chapter 10 RISK PROGRAMMING MODELS 347
Chapter 11 PRICE ENDOGENOUS MATHEMATICAL PROGRAMMING MODELS 401
Chapter 12 GOAL PROGRAMMING 427
Chapter 13 DYNAMIC PROGRAMMING 453
Index 485
vii
This page intentionally left blank