Importance of Total Coupon in Utility Maximization: A Sensitivity Analysis

Mohajan, Devajit and Mohajan, Haradhan (2022): Importance of Total Coupon in Utility Maximization: A Sensitivity Analysis. Published in: Law and Economy , Vol. 1, No. 5 (6 December 2022): pp. 56-67.

Abstract

This study takes an attempt to discuss utility maximization policies. The property of a commodity that enables it to satisfy human wants is called utility. The sensitivity analysis is included in the operation to show optimal policy of an organization. This study deals with four commodities and two constraints, such as budget constraint, and coupon constraint. The economic predictions of future production are necessary for the sustainable production. In the study Lagrange multipliers technique is applied to operate 6×6 bordered Hessian and 6×10 Jacobian appropriately. The sensitivity analysis between commodity and total budget are discussed with detail mathematical analysis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Lagrange multipliers, sensitivity analysis, total coupon, utility maximization
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C31 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions ; Social Interaction Models; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C53 - Forecasting and Prediction Methods ; Simulation Methods; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis; D - Microeconomics > D6 - Welfare Economics; L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P36 - Consumer Economics ; Health ; Education and Training ; Welfare, Income, Wealth, and Poverty

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