Many problems in economics can be formulated as linearly
constrained mathematical optimization problems, where the feasible
solution set X represents a convex polyhedral set. In practice, the
set X frequently contains degenerate verti- ces, yielding diverse
problems in the determination of an optimal solution as well as in
postoptimal analysis.The so- called degeneracy graphs represent a
useful tool for des- cribing and solving degeneracy problems. The
study of dege- neracy graphs opens a new field of research with
many theo- retical aspects and practical applications. The present
pu- blication pursues two aims. On the one hand the theory of
degeneracy graphs is developed generally, which will serve as a
basis for further applications. On the other hand dege- neracy
graphs will be used to explain simplex cycling, i.e. necessary and
sufficient conditions for cycling will be de- rived.
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