Wednesday, August 20, 2008

Optimization

Today's Math Boot Camp session at Mason was on optimization. Basically, solve the First Order Condition for x* and y*. Then confirm that you are maximizing (and not minimizing) by showing the Second Order Condition is negative. Finally, go home and read some Hayek.

If you skip the third step, you are clearly not optimizing...

2 comments:

Juris Naturalist said...

Oh, no! I failed to optimize! Must optimize now. Does "Hayek's Challenge" count?

Will Luther said...

[Refers to judges...]

That look's like a yes.