My Math Forum  

Go Back   My Math Forum > Science Forums > Economics

Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance


Reply
 
LinkBack Thread Tools Display Modes
September 30th, 2013, 03:45 AM   #1
Newbie
 
Joined: Sep 2013

Posts: 5
Thanks: 0

Lagrangian Multiplier (discrete version)

Hi everyone,

I have transformed my previously posted problem into discrete time (viewtopic.php?f=46&t=43103) :
A school is trying to maximize its profits, which consist of the price charged for students of type i, p_i, times the number of students of type i, x_i, minus the Costs of having k customers, C(k). k is simply the sum of all customers x_i. Theta is the average ability of student all students.


According to the solution, we can solve this by assuming we have an optimal and then forming the Lagrangian taking into account both constraints,i.e. the solution would be:


where is the Lagrangian multiplier of the second constraint:
Tartaglia is offline  
 
Reply

  My Math Forum > Science Forums > Economics

Tags
discrete, lagrangian, multiplier, version



Thread Tools
Display Modes


Similar Threads
Thread Thread Starter Forum Replies Last Post
Solve for local extremum using Lagrangian multiplier tomorrow Calculus 8 October 29th, 2013 02:45 PM
Lagrangian Multiplier Tartaglia Economics 0 September 29th, 2013 01:22 PM
Solution to optimization problem using Lagrangian edwinh Calculus 2 October 1st, 2012 12:37 PM
Lagrangian Help sircheesy Applied Math 3 March 1st, 2012 03:27 PM
how solution simplex method and Lagrangian mibuon Linear Algebra 1 March 7th, 2010 11:51 PM





Copyright © 2019 My Math Forum. All rights reserved.