Video |
Description |
a. General Structure of Optimization Problems (8:50) |
(0:00) |
general structure of optimization problems |
(0:46) |
world’s simplest optimization problems |
(2:09) |
optimization problems with many control variables |
(2:51) |
optimization problems with parameters |
(4:05) |
optimization problems with constraints |
(5:46) |
example: utility maximization |
(6:38) |
example: cost minimization |
(7:59) |
famous optimization problems in economics |
|
b. Unconstrained Optimization (7:58) |
(0:00) |
unconstrained optimization |
(0:13) |
world's simplest optimization problems |
(1:26) |
local vs. global maxima and minima |
(4:06) |
economic example - profit maximization |
(6:46) |
optimization with several control variables |
|
c. Constrained Optimization (4:37) |
(0:00) |
constrained optimization problems in economics |
(1:00) |
tangency condition |
(3:50) |
constrained maximization with n variables |
|
d. Lagrangians (Calculus) (4:44) |
(0:00) |
structure of constrained optimization problems |
(1:45) |
first order conditions for constrained optimization |
(2:25) |
method of Lagrangians to get the first order conditions |
(3:35) |
setting partials of the Lagrangian equal to zero |
|
e. Corner Solutions (7:01) |
(0:00) |
maximization subject to a nonnegativity constraint |
(2:35) |
interior solutions versus corner solutions |
|