discrete concave – Optimization Online

Local versus Global Profit Maximization: The Case of Discrete Concave Production Functions

Published: 2006/08/21, Updated: 2006/08/30

Combinatorial Optimization, Finance and Economics, Global Optimization Theory discrete concave, global maximum, local maximum, profit maximization

In this paper we show that for discrete concave functions, a local maximum need not be a global maximum. We also provide examples of discrete concave functions where this coincidence holds. As a direct consequence of this, we can establish the equivalence of local and global profit maximizers for an equivalent well-behaved production function that … Read more

Existence of Equilibrium for Integer Allocation Problems

Published: 2005/12/27, Updated: 2006/05/23

Somdeb Lahiri

Game Theory, Linear Programming discrete concave, existence, integer allocation, linear programming, market equilibrium

In this paper we show that if all agents are equipped with discrete concave production functions, then a feasible price allocation pair is a market equilibrium if and only if it solves a linear programming problem, similar to, but perhaps simpler than the one invoked in Yang (2001). Using this result, but assuming discrete concave … Read more