Corvinus Game Theory Seminar

March 14 (14:00-15:00) room C.714 

Sjur Didrik Flåm (University of Bergen, Norway)

Title: Optimizers trading Inputs

Abstract: Consider a monetized economy in which mathematical optimizers trade inputs to their programs. Suppose everybody worships his pecuniary payoff. Accordingly, each party values marginal inputs by own Lagrange multipliers – taken here as money-based, personal prices. Comparing such prices, the said optimizers consider whether some transactions could be worth their while. If nobody detects any attractive deal, which state prevails then in the markets? Linking mathematical programming to microeconomics and game theory, this paper attempts to shed some light on these matters.