Dynamic Optimization Problems
... We start with an optimizing problem for an economic agent who has to decide each period how to allocate his resources between consumption commodities, which provide instantaneous utility, and capital commodities, which provide production in the next period. At this point we assume that this agent do ...
... We start with an optimizing problem for an economic agent who has to decide each period how to allocate his resources between consumption commodities, which provide instantaneous utility, and capital commodities, which provide production in the next period. At this point we assume that this agent do ...
Section 9.1 - MiraCosta College
... We know that a linear equation in x can be expressed as ax b 0 . A linear inequality in x can be written in one of the following forms: ax b 0 , ax b 0 , ax b 0 , or ax b 0 In each form, a 0 . If an inequality does not contain fractions, it can be solved using the following pro ...
... We know that a linear equation in x can be expressed as ax b 0 . A linear inequality in x can be written in one of the following forms: ax b 0 , ax b 0 , ax b 0 , or ax b 0 In each form, a 0 . If an inequality does not contain fractions, it can be solved using the following pro ...
Probability: A Quick Introduction
... VNM showed that there is always a utility measure that is maximized, given a normative decision maker that follows intuitively highly plausible behavior rules • Maximization of expected utility could even be viewed as an evolutionary law of maximizing some survival function • However, in reality (de ...
... VNM showed that there is always a utility measure that is maximized, given a normative decision maker that follows intuitively highly plausible behavior rules • Maximization of expected utility could even be viewed as an evolutionary law of maximizing some survival function • However, in reality (de ...
First Pages - Yale Economics
... make the choices that define our lives. The results of these individual choices are what underlie the demand curves and price elasticities that we met in earlier chapters. This chapter explores the basic principles of consumer choice and behavior. We shall see how patterns of market demand can be ex ...
... make the choices that define our lives. The results of these individual choices are what underlie the demand curves and price elasticities that we met in earlier chapters. This chapter explores the basic principles of consumer choice and behavior. We shall see how patterns of market demand can be ex ...
Evolutionary and competence- based theories
... Furthermore, the focus becomes one of static, cost-minimizing efficiency, rather than dynamic efficiency and long-term advantage. Comparativestatic or equilibrium-based explanations also have difficulties accounting for the manifest heterogeneity of firm behaviour and performance in the real world. ...
... Furthermore, the focus becomes one of static, cost-minimizing efficiency, rather than dynamic efficiency and long-term advantage. Comparativestatic or equilibrium-based explanations also have difficulties accounting for the manifest heterogeneity of firm behaviour and performance in the real world. ...
Microeconomics
Microeconomics (from Greek prefix mikro- meaning ""small"") is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.This is in contrast to macroeconomics, which involves the ""sum total of economic activity, dealing with the issues of growth, inflation, and unemployment."" Microeconomics also deals with the effects of national economic policies (such as changing taxation levels) on the aforementioned aspects of the economy. Particularly in the wake of the Lucas critique, much of modern macroeconomic theory has been built upon 'microfoundations'—i.e. based upon basic assumptions about micro-level behavior.One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses. Microeconomics also analyzes market failure, where markets fail to produce efficient results, and describes the theoretical conditions needed for perfect competition. Significant fields of study in microeconomics include general equilibrium, markets under asymmetric information, choice under uncertainty and economic applications of game theory. Also considered is the elasticity of products within the market system.