Template-Type: ReDIF-Paper 1.0
Author-Name: Brinkhuis, J.
Author-Name-Last: Brinkhuis
Author-Name-First: Jan
Author-Name: Protassov, V.
Author-Name-Last: Protassov
Author-Name-First: Vladimir
Title: Novel insights into the multiplier rule
Abstract: We present the Lagrange multiplier rule, one of the basic optimization methods, in a new way. Novel features include:  •	Explanation of the true source of the power of the rule: reversal of tasks, but not the use of multipliers. •	A natural proof based on a simple picture, but not the usual technical derivation from the implicit function theorem. •	A practical method to avoid the cumbersome second order conditions. •	Applications from various areas of mathematics, physics, economics. •	Some hnts on the use of the rule.
Creation-Date: 2005-09-29
File-URL: https://repub.eur.nl/pub/7026/ei2005-39.pdf
File-Format: application/pdf
Series: RePEc:ems:eureir
Number: EI 2005-39
Keywords: bargaining, dynamical systems, economics, finance, multiplier rule, second order condition
Handle: RePEc:ems:eureir:7026