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In the new edition of this student text, the author has made substantial revisions and additions to enhance the book’s usefulness without destroying its character as a lucid and readable text. Most economics courses separate the teaching of the mathematics of constrained maximization from its economic applications. The aim of this book is to provide an integrated treatment of optimization that relates mathematics to economics from the outset, thus facilitating a quicker and deeper understanding. Proofs of the mathematical therorems are structured to bring out points of economic interest and to enable economic applications. The illustrative examples are also chosen for their economic interest and usefulness and suggestions for further reading are provided at the end of each chapter. This new edition has been revised to accommodate the siginificant changes the subject has undergone since the publication of the first edition. A chapter on uncertainty has been added with treatment of topics such as finance and asymmetric information, and the chapter on dynamic programmming has been expanded.
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