Two Quadratic Programming Acquisition Models with Reciprocal Services

  • Chin-Wei Yang
  • James Bray McNamara
Conference paper
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 332)


The use of the cost allocation and external acquisition models has centered on the linear programming cost allocation (LPCA) models (Baker and Taylor, 1974; Manes, Park and Jensen, 1982; Chen, 1983; Yang and Pineno, 1984A) and the simultaneous equation approach (Ijiri, 1968; Livingstone, 1969; Kaplan, 1973; Capettini and Salamon, 1977; Yang, 1988). The LP approaches, while being extremely operationally efficient (the number of iterations needed in the simplex method can be found in Dantzig (1980)), have a property of being insensitive to exogenous shock administered to the model. This property and other characteristics of LPCA are discussed in the next section. The difficulty associated with the simultaneous equation approach lies in the fact that the solution may not be positive (Yang, 1988) and hence may not have a reasonable interpretation.


Average Cost Dual Variable Allocation Model Cost Allocation Account Review 


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Copyright information

© Springer-Verlag New York, Inc. 1989

Authors and Affiliations

  • Chin-Wei Yang
    • 1
  • James Bray McNamara
    • 2
  1. 1.Department of EconomicsClarion University of PennsylvaniaClarionUSA
  2. 2.Department of AccountancyClarion University of PennsylvaniaClarionUSA

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