Module MA3484: Methods of Mathematical Economics

Credit weighting (ECTS)

5 credits

Semester/term taught

Hilary term 2016-17

Contact Hours

11 weeks, 3 lectures including tutorials per week

Lecturer

Prof. David Wilkins

Learning Outcomes

On successful completion of this module, students will be able to:

determine optimal solutions of simple linear programming problems using the simplex method;
justify with reasoned logical argument the basic relationships between feasable and optimal solutions of a primal linear programming problem and those of the corresponding dual programme;
explain why the simplex method provides effective algorithms for solving linear programming problems;
explain applications of linear algebra and linear programming in contexts relevant to mathematical economics;

Module Content

Introduction to linear programming problems.
The Transportation Problem
Methods for solving linear programming problems based on the Simplex Algorithm of George Danzig.
Duality in the theory of linear programming problems.
Farkas's Lemma.
Applications of Farkas's Lemma to prove duality theorems in the theory of linear programming problems.
The Karush-Kuhn-Tucker Conditions characterizing optimal solutions of nonlinear programming problems.

Module Prerequisite