Optimal Estimation of Executive Compensation by Linear Programming

Abstract

Linear programming, as an optimizing method for handling a mass of interacting variables, has received considerable attention in applications to such problems as production scheduling, logistics, and mobilization studies. But linear programming may also be used in a variety of other ways. This paper is concerned with one such alternative use. It will be shown how, by appropriate adaptations, the methods of linear programming may be used to obtain estimates of parameters when more usual methods, such as "least squares," are difficult or impossible to apply.