Economics 214 Lecture 34 Multivariate Optimization.

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Presentation transcript:

Economics 214 Lecture 34 Multivariate Optimization

Multiproduct Monopolist

Multiproduct Monopolist Cont.

Price Discrimination

Price Discrimination Cont.

Second Order Conditions

A sufficient condition for a stationary point of a univariate function to be a local maximum is that the second derivative evaluated at that point is negative. This implies that a sufficient condition for a local maximum is that the second differential at the point be negative. A sufficient condition for a local minimum of a univariate function is that the second differential evaluated at that point is positive for any dx.