Register to reply

Optimal provision for a Public Good

by JoshMaths
Tags: optimal, provision, public
Share this thread:
JoshMaths
#1
Apr27-13, 11:19 AM
P: 31
So a homework question so just hints would be appreciated.

we have each persons utility function as Ui = AaiBi

Solve for optimum level of the public good, both goods cost 1/unit

Ok do you use Lagrangian?
Do you need to express it in the set function way as in ui[Aa1+Aa2,(yi - Aai)/p]

or do you already have the expression you need?

Thanks,

Josh
Phys.Org News Partner Social sciences news on Phys.org
Why plants in the office make us more productive
Precarious work schedules common among younger workers
Research shows over half of shared-path users frustrated by the actions of others
JoshMaths
#2
May6-13, 12:52 PM
P: 31
Wow, viewed nearly 500 times and no answers or help?

Maybe this is why we need an Economics forum...
D H
#3
May6-13, 01:14 PM
Mentor
P: 15,170
Quote Quote by JoshMaths View Post
Wow, viewed nearly 500 times and no answers or help?
A good number of those views were by web crawlers.

Maybe this is why we need an Economics forum...
You didn't receive help because there's not much to go on. You didn't describe your terms. What does that subscript i on the left hand side represent? How about on the right? Do those subscripts represent the same thing? What are A and B? Why the superscript on A? What motivated your attempt at a solution?

We can't read your mind. You did not give us a well worded problem with which we we can offer help you with.

JoshMaths
#4
May6-13, 01:29 PM
P: 31
Optimal provision for a Public Good

Hi D H thanks for the reply, i am sure you have helped me in the past, i remember the name.

I assumed that since it was in the Economics section people would be familiar with utility functions and the like, same way when you see an integral or power series you know it without someone having to go through it.

A = A public good B = a private good the 'i's are for each persons differing utility functions, normally constrained at two people so U1 and U2 and all remaining subscripts following that pattern.

A has a superscript same way anything does, because U is a function and A and B are variables.

It was a homework attempt so that is my motivation.

Thanks for your help.


Register to reply

Related Discussions
Microeconomics-Provision and Agents-Identifying and Providing Types of Good Precalculus Mathematics Homework 0
How do i determine optimal temperature and optimal PH level? Biology, Chemistry & Other Homework 1
Senior in high school... looking for most optimal path to a good CS grad school. Academic Guidance 7
Optimal theory Calculus 0
Optimal number of goes Set Theory, Logic, Probability, Statistics 7