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库恩-塔克定理在微观经济学中的应用(The application of Kuhn Tucker theorem in microeconomics)
库恩-塔克定理在微观经济学中的应用(The application of Kuhn Tucker theorem in microeconomics)
The application of Kuhn Tucker theorem in microeconomics
Jie Gen Ge
(School of economics, Zhongnan University of Economics and Law, Wuhan 430060)
In many problems of economics, it is necessary to use inequality constraints, and the Kuhn Tucker theorem in mathematical programming is the appropriate form to solve these problems. The Kuhn Tucker theorem mainly deals with the relation between the original problem and the Kuhn Tucker condition, that is, to study the relation between the optimal solution of the original problem and the point satisfying the Kuhn Tucker condition. In this paper, the application of Kuhn - Tucker theorem is illustrated on several important issues in microeconomics.
Keywords Kuhn Tucker; conditional cost minimization; Nash equilibrium; principal-agent problem;
First, the cost minimization problem
The problem of minimizing costs is to find a method of producing at the minimum cost under the condition of a given level of output. We illustrate the application of the Kuhn Tucker theorem with the cost function of linear techniques. It is assumed that the production function elements 1 and element 2 can be completely replaced, so that the cost function takes the following form:
Among them, and the price for the two elements, for the production.
For the convenience of expression, we make. At this point, minimize the problem as
The Lagrange function of the problem can be written
Kuhn Tucker first-order conditions for
The complementary relaxation condition is
If
If
We now examine inequalities, constraints, functions, or situations that do not work:
One,. At this point, unless, otherwise, the conditions cannot be met.
Ii,. According to the complementary relaxation condition,. The first order condition is available:,. As a result, this situation would have occurred at that time. Because, so.
Third,. It can be introduced in a similar way.
Fourth,. We can know by the complementary
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