Pricing in Optimization and Game Theory. 3 credits

Catalog description

Allocation of limited resources among competing activities to maximize the outcome or minimization of expenses required to produce a given assortment of goods and services are two typical problems faced by any economic institution. Mathematical modeling of such problems and finding efficient mathematical tools for solving them are two main goals of modern optimization theory. Pricing limited resources, goods, and services is the key instrument for theoretical analysis of complex economical systems. Pricing theory can also give rise to numerical methods for finding optimal solutions and economic equilibrium. Fundamental tools in pricing theory are the classical Lagrangian and Lagrange multipliers for constrained optimization. Covers the basic ideas and methods of linear programming and matrix games. Particular emphasis to pricing for both theoretical analysis and numerical methods. Offered by Systems Engr & Operations Rsch . Limited to two attempts.