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The efficiency of decomposition vs direct solution with implications for the question of decentralized or centralized planning

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The investigation provides overwhelming evidence that decomposition tends to become increasingly more efficient than direct solution as the number of subproblems becomes greater.

Further investigation would be required to obtain a comparable picture of the behaviour of decomposition with respect to an increasing number of variables in the master problem as their range of variation in the present study is rather restricted.

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It is gratefully acknowledged: that in implementing the decompositional procedure on the computer I have benefitted from Mr. A. C. McKay's advice on matters relating to the computer programmes; also that I enjoyed the pleasant and friendly co-operation of the staff of the computer Centre, University of Birmingham, without which the difficulties involved in carrying out the present task would have been compounded manifold; that Dr. C.-L. Sandblom carefully studied this paper and suggested a number of valuable improvements. Finally, I should like to thank Professor Kronsjö for the encouragement that he has given to me in executing this project and to the research council which made this investigation possible.

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Wong, K.P. The efficiency of decomposition vs direct solution with implications for the question of decentralized or centralized planning. Econ Plann 13, 199–209 (1973). https://doi.org/10.1007/BF00417659

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