STUDY OF ECONOMICS APPLICATIONS IN CERTAIN NON-LINEAR PROGRAMMING DUALITY PROBLEMS

Abstract

The duality of nonlinear programming problems can provide interesting economic interpretations of nonlinear programming resource allocation models. An economic interpretation of dual problems specifies how changing the value of resources can change the optimal solution. In the first parts of this article, we will briefly introduce the concept of linear and non-linear programming. This article also providessome effective methodsforsolving nonlinear programming problems such as Lagrangian Method, Karush-Kuhn Tucker (KKT) conditions along with examples. Subsequently, the concept of duality for nonlinear programming is introduced. Various types of duals like Wolfe dual, Lagrangian dual are discussed in detail along with their examples. The Economic interpretation of duality is then explained in detail. An example of economic interpretation based on real life is also discussed.