S. N. Afriat
- Published in print:
- 1987
- Published Online:
- November 2003
- ISBN:
- 9780198284611
- eISBN:
- 9780191595844
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198284616.003.0025
- Subject:
- Economics and Finance, Microeconomics
This is the second of five chapters on optimal programming (the typical mathematics of economics) and related issues as related to choice making. It introduces convexity conditions, and shows where ...
More
This is the second of five chapters on optimal programming (the typical mathematics of economics) and related issues as related to choice making. It introduces convexity conditions, and shows where they have effect, together with Slater's condition, in assuring the existence of a support to the limit function, so providing Lagrange multipliers, or shadow prices, of resources that have part in the optimality conditions. Then for the case of differentiable functions the Kuhn–Tucker conditions are obtained. The six sections of the chapter are: convexity; programming convexity theorem; Slater's condition; optimality theorem; non‐negative maxima; the Kuhn–Tucker conditions.Less
This is the second of five chapters on optimal programming (the typical mathematics of economics) and related issues as related to choice making. It introduces convexity conditions, and shows where they have effect, together with Slater's condition, in assuring the existence of a support to the limit function, so providing Lagrange multipliers, or shadow prices, of resources that have part in the optimality conditions. Then for the case of differentiable functions the Kuhn–Tucker conditions are obtained. The six sections of the chapter are: convexity; programming convexity theorem; Slater's condition; optimality theorem; non‐negative maxima; the Kuhn–Tucker conditions.
