Optimization in Economic Theory

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9780198771036: Optimization in Economic Theory

Building on a base of simple economic theory and elementary linear algebra and calculus, this broad treatment of static and dynamic optimization methods discusses the importance of shadow prices and functions defined by solutions of optimization problems.

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From the Back Cover:

This revised edition includes a new chapter on uncertainty, with applications to portfolio selection and the economics of information, and a fuller treatment of dynamic programming, with applications to search theory.The book is aimed at second and third year undergraduates taking macroeconomics courses with some quantitative content. It should also provide a simpler alternative to many postgraduate texts.

About the Author:

Avinash K. Dixit is at Princeton University.

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