Lecture 8
Mathematical Economics
1 2
2 1
Good 1
x1 2
M s. 2
2 1
=(1, 2)
Good 2
x2 1
M s. 1
1 1
x =(x1,x2)
x1 1
x2 2
1 2
2 1
Good 1
=(1, 2)
Good 2
C
M s. 1
a
1 1
M s. 2
C
2 1
We can use this informat
NotesandtheLawofIteratedExpectationsandonsolvinglinearstochasticdifferenceequations
We have been talking about the law of iterated expectations the last few lectures, and it seems clear thatthe
concep
Lecture 4
Econ 348 Mathematical
1. Review. In Week 1 we spent conomics time going through some
considerable amount of
Ein mathematical economics. Today we will focus
basic mathematical tools used
more
Lecture 3
Mathematical Economics
Review
The basic points of our last few lectures are as follows:
.
We set out to examine our most basic choice problem by first,
postulating some properties wed like t
Lecture6
MathematicalEconomics
1. Taking Stock. In previous lectures we made the case that wed like to have superior sets
that are convex: these ensure the indifference curves will bow the right way a
Econ 348 Mathematical Economics
Homework Set 2
You may work in groups of 3 or less on this assignment. If you work in a
group, please hand in 1 assignment. This problem set is due at the beginning
of
Econ 348 Mathematical Economics
Homework Set 4
You may work in groups of 3 or less on this assignment. If you work in a group, please hand in 1
assignment. This problem set is due Monday March 18th at
Consumption Rivalry
Consider our two friends again, (Pascal and Milton Friedman) in a pure exchange economy with two
goods and no free disposal. Pascal has a preference relation given by the utility f
1 Functions
3. Axioms for Preference Relations
A) Continuity. A function is continuous at a point if, for all
0, there
. A function is
exists a
0 such that
,
implies
,
called a
Econ 348 Mathematical Economics
ANSWERS Homework Set 2
You may work in groups of 3 or less on this assignment. If you work in a
group, please hand in 1 assignment. This problem set is due at the begin
1 Functions
3. Axioms for Preference Relations
A) Continuity. A function is continuous at a point if, for all
0, there
. A function is
exists a
0 such that
,
implies
,
called a