Cover: Solving Optimization Problems Subject to a Budget Constraint with Economies of Scale

Solving Optimization Problems Subject to a Budget Constraint with Economies of Scale

Published 1974

by Richard Hillestad


Download Free Electronic Document

FormatFile SizeNotes
PDF file 0.3 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 Format Price
Add to Cart Paperback15 pages $20.00

This paper describes a finite procedure for locating a global minimum of a problem which is linear in the objective and constraints except for one nonlinear constraint which is of the "reverse convex" variety. That is, the direction of the inequality is the opposite of that required for a convex constraint. Budget constraints in which the cost functions are subject to economies of scale are typically of this form. An illustrative example of the procedure is provided.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.