Search results
Results from the WOW.Com Content Network
An allocation is a pair (,) where and , i.e. is the 'matrix' (allowing potentially infinite rows/columns) whose ith column is the bundle of goods allocated to consumer i and is the 'matrix' whose jth column is the production of firm j. We restrict our attention to feasible allocations which are those allocations in which no consumer sells or ...
Welfare economics is a field of economics that applies microeconomic techniques to evaluate the overall well-being (welfare) of a society. [1]The principles of welfare economics are often used to inform public economics, which focuses on the ways in which government intervention can improve social welfare.
So, for every contribution of v to the algorithm welfare, the potential contribution to the optimal welfare could be at most 2v. Therefore, the optimal welfare is at most 2 times the algorithm welfare. The factor of 2 is tight for the greedy algorithm. For example, suppose there are two items x,y and the valuations are: {}
Allocation efficiency occurs when there is an optimal distribution of goods and services, considering consumer's preference. When the price equals marginal cost of production, the allocation efficiency is at the output level. This is because the optimal distribution is achieved when the marginal utility of good equals the marginal cost.
Formulas in the B column multiply values from the A column using relative references, and the formula in B4 uses the SUM() function to find the sum of values in the B1:B3 range. A formula identifies the calculation needed to place the result in the cell it is contained within. A cell containing a formula, therefore, has two display components ...
If Walras's law has been satisfied, the optimal solution of the consumer lies at the point where the budget line and optimal indifference curve intersect, this is called the tangency condition. [3] To find this point, differentiate the utility function with respect to x and y to find the marginal utilities, then divide by the respective prices ...
In mathematics and economics, transportation theory or transport theory is a name given to the study of optimal transportation and allocation of resources. The problem was formalized by the French mathematician Gaspard Monge in 1781. [1] In the 1920s A.N. Tolstoi was one of the first to study the transportation problem mathematically.
The optimization of portfolios is an example of multi-objective optimization in economics. Since the 1970s, economists have modeled dynamic decisions over time using control theory. [14] For example, dynamic search models are used to study labor-market behavior. [15] A crucial distinction is between deterministic and stochastic models. [16]