《《Topic 3 _ Optimization _ interior optima》.pdfVIP

Seminars on ―Mathematics for Economics and Finance‖ 1 Topic 3: Optimization - interior optima Session: 27 Aug 2011 (Sat), 9:30am – 1:30pm I. Optimization: introduction Decision-makers (e.g. consumers, firms, governments) in standard economic theory are assumed to be rational. That is, each decision-maker is assumed to have a preference ordering over the outcomes to which her actions lead and to choose an action, among those feasible, that is most preferred according to this