Reformulate the problem as a linear complementarity problem

Assignment Help Engineering Mathematics

Reference no: EM131483910

Question: A pure monopolist operates in a market where he faces stochastic inverse demand functions, p˜ = c˜ - Dx, where D is an asymmetric positive semidefinite matrix and the random vector c˜ is distributed according to a normal density with mean E (c˜) and variance Var(c˜). This entrepreneur's preferences are expressed by the utility function u˜ = 1 - e - Φ^{r^} , where φ > 0 is a constant risk aversion coefficient and r^ is stochastic revenue

(a) Set up and justify an appropriate model to represent the pure monopolist's behavior.

(b) Derive the dual specification and give a complete economic interpretation.

Reference no: EM131483910

Questions Cloud

Average number of customers physically inside company : A quick oil change company employs 3 people to change the automobile oil for its customers. what is the average number of customers physically inside company

Compute expected utility of symmetric quadratic programming : With respect to the symmetric quadratic programming specification of a risk problem, it was written: "If the primal objective function is viewed as maximizing.

Analyse the business model of an existing business : Assignment 2: Business model analysis and patterns. Describe and analyse the business model of an existing business using the Business Model Canvas

Evaluate the influence of courts in policy making : Analyse court house violence, both actual and potential and what must be done to assess and deal with threats to court actors.

Reformulate the problem as a linear complementarity problem : A pure monopolist operates in a market where he faces stochastic inverse demand functions, p˜ = c˜ - Dx, where D is an asymmetric positive semidefinite matrix.

How does this apply to your current or desired career : What are the 5 competitive forces, and describe them? how does this apply to your current or desired career.

Describe the research approaches and types of data : Look for potential pitfalls in boot camp programs. Select two articles from your research that have taken different approaches to evaluate boot camp programs.

Conduct porters five forces for fast food burger industry : Conduct a porters five forces for a fast food burger industry such as White Castle for Germany.

Explain the hacker ethic and hacker manifesto : Explain the hacker ethic and hacker manifesto. Give your opinion as to why hackers do not consider themselves to be criminals.

User Account

All Pages