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The Theory of Linear Economic Models

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  • Gale, David

Abstract

In the past few decades, methods of linear algebra have become central to economic analysis, replacing older tools such as the calculus. David Gale has provided the first complete and lucid treatment of important topics in mathematical economics which can be analyzed by linear models. This self-contained work requires few mathematical prerequisites and provides all necessary groundwork in the first few chapters. After introducing basic geometric concepts of vectors and vector spaces, Gale proceeds to give the main theorems on linear inequalities—theorems underpinning the theory of games, linear programming, and the Neumann model of growth. He then explores such subjects as linear programming; the theory of two-person games; static and dynamic theories of linear exchange models, including problems of equilibrium prices and dynamic stability; and methods of play, optimal strategies, and solutions of matrix games. This book should prove an invaluable reference source and text for mathematicians, engineers, economists, and those in many related areas.

Suggested Citation

  • Gale, David, 1989. "The Theory of Linear Economic Models," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226278841, April.
  • Handle: RePEc:ucp:bkecon:9780226278841
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    Cited by:

    1. Bergemann, Dirk & Morris, Stephen, 2011. "Robust implementation in general mechanisms," Games and Economic Behavior, Elsevier, vol. 71(2), pages 261-281, March.
    2. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    3. repec:eee:proeco:v:194:y:2017:i:c:p:167-180 is not listed on IDEAS
    4. Louis de Mesnard, 2009. "Is The Ghosh Model Interesting?," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 361-372.
    5. John Gunnar Carlsson & Erik Carlsson & Raghuveer Devulapalli, 2016. "Shadow Prices in Territory Division," Networks and Spatial Economics, Springer, vol. 16(3), pages 893-931, September.

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