Take the 2-minute tour ×
Mathematics Stack Exchange is a question and answer site for people studying math at any level and professionals in related fields. It's 100% free, no registration required.

I am working on a linear static optimization problem. I found a solution to the problem. However, I want to formally check the solution existence. I tried some methods but I don't know if it is enough to check those. I will note below the problem and the methods I tried. I will appreciate your comments.

$\underset {a_i or G_i^L} {max}$ $\alpha$ ln $C_i$ + $\beta$ ln $G_i^L$ + $\beta$ ln $G_i^C$

s.to

$C_i$=[1-t(fd$a_i$+(1-fd))]$Y_i$

$G_i^L$=fd$a_i$t$Y_i$

$G_i^C$ = $\sum \limits_{i=1}^n$[(1-fd)t$Y_i$]$ p_i \over \sum \limits_{i=1}^n p_i$

where 0<$\alpha$<1 and 0

0$<fd<$1, 0$<t<$1, 0$<p_i<$1, $a_i,Y_i >$0

what I tried is called Inada conditions: checking the limit of the first derivatives w.r.t. $C_i$, $G_i^C$, and $G_i^L$. When that limit goes to infinity the derivatives goes to zero. This satisfies the Inada conditions. I also checked that this objective function is concave and increasing in $C_i$, $G_i^C$, and $G_i^L$. Second derivatives are positive.

Do I have to check the Weierstrass Theorem? I have a solution to this problem but the substitutable equalities are not compact.

share|improve this question

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Browse other questions tagged or ask your own question.