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The Lagrangian, constraint qualifications and economics

Author

Listed:
  • Sjur D. Flåm

    (University of Bergen)

  • Jan-J. Rückmann

    (University of Bergen)

Abstract

Considering constrained choice, practitioners and theorists frequently invoke a Lagrangian to generate optimality conditions. Regular use of that vehicle requires, however, some constraint qualification. Yet many economists go easy on the mathematics of that issue. Conversely, few mathematicians elaborate on the economics of the context. Thereby both parties leave some lacunas as to didactics or intuition. This note attempts to shed some light on these matters.

Suggested Citation

  • Sjur D. Flåm & Jan-J. Rückmann, 2022. "The Lagrangian, constraint qualifications and economics," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 96(2), pages 215-232, October.
    • Handle: RePEc:spr:mathme:v:96:y:2022:i:2:d:10.1007_s00186-022-00789-7
    DOI: 10.1007/s00186-022-00789-7
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    References listed on IDEAS

    as
    1. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, April.
    2. D.P. Bertsekas & A.E. Ozdaglar, 2002. "Pseudonormality and a Lagrange Multiplier Theory for Constrained Optimization," Journal of Optimization Theory and Applications, Springer, vol. 114(2), pages 287-343, August.
    3. LeRoy,Stephen F. & Werner,Jan, 2014. "Principles of Financial Economics," Cambridge Books, Cambridge University Press, number 9781107024120, February.
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