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Around 1947, von Neumann showed that for any finite two-person zero-sum game, there is a feasible linear programming (LP) problem consisting of a primal-dual pair of linear programs whose saddle points yield equilibria of the game, thus providing an immediate proof of the minimax theorem from...
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The formal similarity between von Neumann's theorem on maximal growth and (a weak form of) the fundamental theorem of linear programming is striking. The parallelism is explained by considering a simple economy for which the two problems are identical
Persistent link: https://www.econbiz.de/10014154378
Many questions of interest in economics can be stated in terms of monotone comparative statics: If a parameter of a constrained optimization problem increases, when does its solution increase as well. This paper characterizes monotone comparative statics in different directions in...
Persistent link: https://www.econbiz.de/10012894110
This paper points out that the treatment of utility maximization in current textbooks on microeconomic theory is deficient in at least three respects: breadth of coverage, completeness-cum-coherence of solution methods and mathematical correctness. Improvements are suggested in the form of a...
Persistent link: https://www.econbiz.de/10012723706
We characterize x-directional monotone comparative statics in function spaces, generalizing the results in Barthel and Sabarwal (2018) for finite-dimensional Euclidean spaces, and showing that their proofs generalize to infinite-dimensional spaces. Our generalizations include those for...
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Evolution of speculative attack models show certain progress in developing idea of the role of expectations in the crisis mechanism. Obstfeld (1996) defined expectations as fully exogenous. Morris and Shin (1998) endogenised the expectations with respect to noise leaving information significance...
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