This book reviews the basic theory of partial differential equations of the first and second order and discusses their applications in economics and finance. It starts with well-known applications to consumer and producer theory, and to the theory of option pricing and then introduces new applications that emerge from current research (some of which is the author's own) in bounded rationality, game theory, and multi-dimensional screening.Apart from the new areas of research outline above, partial differential equations have already found their applications in consumer theory, producer theory, and finance. For example, if one knows the Marshallian demand one can calculateanbsp;...
|Title||:||Partial Differential Equations in Economics and Finance|
|Publisher||:||Nova Publishers - 2007-01-01|