Questions tagged [real-analysis]

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6
votes
1answer
54 views

Proove that for every Nash equilibrium $\sigma^*$, the probability distribution $p_{\sigma^*}$ is a correlated equilibrium

This is a classic theorem in game theory, that is left as an excersice in my textbook. Can anybody proove it? I can not thing of anything excpet from the definition of the correlated equilibrium in ...
1
vote
1answer
25 views

What is the meaning of the support set in game theory?

What is the meaning of the support set in game theory? I have seen it, in many papers, however none there explains how did they find it or why did the define it in a specific way. I understand that ...
0
votes
0answers
12 views

Does using different Analysis Methods give the same better alternative to choose between economic projects?

Will all analysis methods (PW-FW-AW-ROR-B/C) that we can use for determining project acceptability on an economic basis gives you the correct same-alternative for the same cash-flow always?
0
votes
1answer
51 views

Indifference Curve Analysis [closed]

I would like to analyse how COVID-19 has impacted the aviation industry by looking at how the demand for airlines + holidays has fallen via an indifference curve analysis. However, I'm not sure where ...
3
votes
0answers
21 views

Proof of Criteria for Local Identification in Rothenberg (1971)

My question is regarding Theorem 1 (page 579) of Rothenberg (1971). It is associated with four assumptions given on the same page. But, I only have a question about a single step of the proof, so I ...
1
vote
1answer
98 views

Budget Set- closed and boundedness

I am fairly new to economics, and we were introduced to budget sets, The professor mentioned that the budget set $B(p,w) = \{x \in R^{l}_{+}: px \leq w\}$ is non empty and closed - I could prove the ...
5
votes
0answers
154 views

Topological intuition to continuous preference relation

For a Microeconomics Course, we are going through MWG, and in the lecture we discussed the notion of a continuous preference relation. A preference relation $\succsim$ on a set $X$ is called ...
3
votes
1answer
175 views

Concavity of Cobb-Douglass Utility Function on Non-Open set

My textbook argues that the Cobb-Douglass utility function $u=(x1)^a(x2)^b$ with $a,b>0$ and $a+b<1$ is concave on $R2+$ by computing the Hessian and showing it to be negative semidefinite for ...
0
votes
0answers
74 views

Relationship between strictly convex preference and convex preference

Let X be a convex subset of linear topological space and let binary relation >= be a complete preordering. prove: If preference relation is strictly convex and continuous, then it is convex. Since ...
0
votes
2answers
44 views

Real wages fluctuation as per classical economics

I have just started studying Macroeconomics and have noticed that as per the Classical economics, the real wage level will always remain same because any change in price level in the market is ...
0
votes
1answer
138 views

Calculating elasticity between terms in a regression equation

Given the following regression: $ln(w_i)=\beta_1+\beta_2age+\beta_3age_i^2+\beta_4Y_i+\beta_5T_i+\beta_6Mar_i+\epsilon_i$ I am asked to calculate the elasticity of wages with respect to age. Is the ...
1
vote
0answers
23 views

What problems arise when the minimum wage is directly linked to the inflation rate?

For example if the minimum wage is 10, and the inflation for the year is 3%, then next year the minimum wage is 10*1.03 =10.30. the next year, inflation is 5%, so the minimum wage becomes 10.82. The ...
1
vote
1answer
135 views

Supporting Hyperplane Theorem and quasiconcave utility function

My notes says that if $u(.)$ is strictly quasiconcave and differentiable, by the supporting hyperplane theorem, there exists $p >>0$ and $w \geq 0$ such that $ x = x(p,w)$ $\forall x$. I am ...