Flåm, Sjur Didrik; Jongen, Hubertus Th.; Stein, Oliver - Institutt for Økonomi, Universitetet i Bergen - 2007
consequence, for the multiplier derivatives.
Keywords: Sensitivity, optimal value function, shadow price, Karush-Kuhn-
Tucker … ddtλ(t). For this purpose one could first
introduce the optimal value function
v(t) := optx{f(x,t) : h(x,t) = 0};
second … that x(t) is a local minimizer of P(t) for t close to ¯t. Hence the
(local) optimal value function of P(t) is
v(t) = f …
