For example, if a production line is already operating at its maximum 40-hour limit, the shadow price would be the maximum price the manager would be willing to pay for operating it for an additional hour, based on the benefits he would get from this change.
22.
In the next iteration, the central agency uses the information received from firms to come up with a revised resource allocation; for example if firm i reports a high shadow price for resource j, the agency will grant more of this resource to this firm and less to other firms.
23.
His main new results are the application of happiness economics with Barbara Baarsma to estimate shadow prices of airplane-noise hindrance near Amsterdam Airport, which method may be used for estimating the shadow prices of other external effects as well and the development of a two-layer model with Frijters and Ferrer-i-Carbonell, where life satisfaction is seen as an aggregate of domain satisfactions.
24.
His main new results are the application of happiness economics with Barbara Baarsma to estimate shadow prices of airplane-noise hindrance near Amsterdam Airport, which method may be used for estimating the shadow prices of other external effects as well and the development of a two-layer model with Frijters and Ferrer-i-Carbonell, where life satisfaction is seen as an aggregate of domain satisfactions.
