For questions regarding the mathematical analysis of economic models and problems. This includes questions about the formulation or solution of models from microeconomics or macroeconomics.

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4
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2answers
291 views

Majoring in maths

Does majoring in mathematics with economics (with emphasis on mathematics) have good career prospects? Does anyone know something about this course?
2
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0answers
161 views

What is the (expected) outcome of this hybrid auction?

A certain hybrid auction can be accurately modelled as follows. There are $n$ risk-neutral, rational participants $i=1,2,\ldots,n$, and a guy called Zerro: $i=0$. Each, except Zerro, has a private ...
6
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1answer
119 views

Invariance of strategy-proof social choice function when peaks are made close from solution

A question emerging from reading Schummer, J., & Vohra, R. V. (2002). Strategy-proof Location on a Network. Journal of Economic Theory, 104(2), 405–428. The setting is as follows: A finite set ...
7
votes
2answers
246 views

Existence of a utility function on the reals

Suppose I have $\preceq$, a total order on $\mathbb R^n$. I wish to show that there is a utility function $u:\mathbb R^n\to\mathbb R$ such that $x\preceq y \leftrightarrow u(x)\leq u(y)$. I came up ...
3
votes
1answer
110 views

Mistake wikipedia article on St petersburg paradox?

I suspect that there is a mistake in the wikipedia article on the St petersburg paradox, and I would like to see if I am right before modifying the article. In the section "Solving the paradox", the ...
2
votes
1answer
212 views

How can a social welfare function be a linear combination of von Neumann-Morgenstern utility functions?

The von Neumann-Morgenstern axioms were an attempt to characterize rational decision-making in the presence of risk. The von Neumann-Morgenstern utility theorem says that if someone is vNM-rational, ...
3
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1answer
112 views

No theft model of corruption

Consider the model of corruption explored by Shleifer and Vishni’s where there is one government-produced good $X$. There is a demand for that good described by the inverse demand equation $$Q_d = 10 ...
3
votes
2answers
438 views

Finding best response function with probabilities (BR) given a normal-matrix representation of the game

We are given players 1, 2 and their respective strategies (U, M, D for player 1, L, C, R for player 2) and the corresponding pay-offs through the following table: $\begin{matrix} 1|2 & L & C ...
1
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2answers
213 views

Geometric series to calculate price

I decided to add my extension to this question as a new question here. I am trying to represent the following as a geometric series equation: ...
1
vote
1answer
11k views

Deriving demand functions given utility

A consumer purchases food $X$ and clothing $Y$. Her utility function is given by: $U(X,Y) = XY +10Y$, income is $\$100$ the price of food is $\$1$ and the price of clothing is $P_y$. Derive the ...
0
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1answer
42 views

Suppose that the sequence of prices{$p_k$} converges to a limiting price $\bar p$. What must $\bar p$ be?

We let $Q_k$ denote the supply of commodity, $D_k$ the demand for the commodity, and $p_k$ the price at $k$-th time. The demand depends on the current price, $D_k = a + b p_k$ and the supply depends ...
0
votes
1answer
67 views

Compound discount

I am trying to construct an equation for calculating a price, that takes into account compound interest of 10%. 1 item = $10 2 items = $19 3 items = $27.1 so ...