Econometrica Vol. 54 No. 3 1986
Neighborhood Systems for Production Sets with Indivisibilities
Abstract
A production set with indivisibilities is described by an activity analysis matrix with activity levels which can assume arbitrary integral values. A neighborhood system is an association with each integral vector of activity levels of a finite set of neighboring vectors. The neighborhood relation is assumed to be symmetric and translation invariant. Each such neighborhood system can be used to define a local maximum for the associated integer programs obtained by selecting a single commodity whose level is to be maximized subject to specified factor endowments of the remaining commodities. It is shown that each technology matrix (subject to mild regularity assumptions) has a unique, minimal neighborhood system for which a local maximum is global. The complexity of such minimal neighborhood systems is examined for several examples.
- DOI
- 10.2307/1911306
- Volume
- 54
- Issue
- 3
- Pages
- 507
- Sources
- bibtex:phds-export.bib openalex crossref