Lecture 1: Introduction to Optimization Problem
Characteristics of Microeconomic Theory:
I.
Optimization
1. Static vs. dynamic
2. Certainty vs. uncertainty
3. Single decision-maker vs. multiple decis
12 September 2009 Eric Rasmusen, [email protected] Http:/www.rasmusen.org
3 Mixed and Continuous Strategies
A pure strategy maps each of a players possible
information sets to one action. si : i a
3 September 2009 Eric Rasmusen, [email protected]
http:/www.rasmusen.org/.
Table 1: Ranked Coordination
Jones
Large
Small
Large 2,2 1, 1
Smith
Small 1, 1 1,1
Payos to: (Smith, Jones). Arrows show
Optimization with Mathematica
1. Unconstrained Optimization
(1) Functions of a Single Variable
Example : Plot the following function: f ( x) =x 4 - 2 x 2 +1 , which is defined
on the interval S=[-2,2]
Calculus and Quadratic Form
Calculus
Calculus is a way of tying linear algebra and analysis together by
approximating certain functions by linear functions.
One Variable Calculus
Derivative at a point
19 September 2009 Eric Rasmusen, [email protected] Http:/www.rasmusen.org
Follow the Leader I, which has three pure strategy
Nash equilibria of which only one is reasonable.
Equilibrium
Strategies
Introduction to Mathematica
You normally interact with Mathematica through documents called
notebooks. This tutorial is an example of a notebook. Notebooks can
have many forms. But typically they cons
5 Reputation and Repeated Games with
Symmetric Information
5 October 2009 Eric Rasmusen, [email protected]
Http:/www.rasmusen.org.
The Chainstore Paradox
Suppose that we repeat Entry Deterrence I