Springer Mathematics and Methodology for Economics: Applications, Problems and Solutions (Springer Texts in Business and Economics)

This book about mathematics and methodology for economics is the result of the lifelong experience of the authors. It is written for university students as well as for students of applied sciences. This self-contained book does not assume any previous knowledge of high school mathematics and helps understanding the basics of economic theory-building. Starting from set theory it thoroughly discusses linear and non-linear functions, differential equations, difference equations, and all necessary theoretical constructs for building sound economic models. The authors also present a solid introduction to linear optimisation and game theory using production systems. A detailed discussion on market equilibrium, in particular on Nash Equilibrium, and on non-linear optimisation is also provided. Throughout the book the student is well supplied with numerous examples, some 2000 problems and their solutions to apply the knowledge to economic theories and models. Review “Eichhorn and Gleissner provide all the mathematical fundamentals needed for understanding economic theories. Their approach in presenting mathematical fundamentals as the foundation of economic research and to use examples from economics (instead of physics, prevalent almost everywhere else) is outstanding. The numerous exercises with solutions at the end of each section are very helpful and complete my excellent overall impression of the didactics of the book by Eichhorn and Gleissner. In my opinion, the book is very well-suited for beginners, advanced students and researchers alike. When reading this book, I could truly feel the lifelong teaching experience of its two authors. A highly recommendable book.” (Prof. Jochen Staudacher, University of Applied Sciences Kempten, Germany) From the Back Cover This book about mathematics and methodology for economics is the result of the lifelong experience of the authors. It is written for university students as well as for students of applied sciences. This self-contained book does not assume any previous knowledge of high school mathematics and helps understanding the basics of economic theory-building. Starting from set theory it thoroughly discusses linear and non-linear functions, differential equations, difference equations, and all necessary theoretical constructs for building sound economic models. The authors also present a solid introduction to linear optimisation and game theory using production systems. A detailed discussion on market equilibrium, in particular on Nash Equilibrium, and on non-linear optimisation is also provided. Throughout the book the student is well supplied with numerous examples, some 2000 problems and their solutions to apply the knowledge to economic theories and models. About the Author Wolfgang Eichhorn is professor at the Karlsruhe Institute of Technology (KIT, formerly University of Karlsruhe(TH)), Faculty of Economics. His fields of research are economics, mathematics, operations research, mathematical modelling in economics, particularly in practise and theory of production, growth, distribution of wealth, games, prices, and price indices. He also published papers in statistics, especially on measurement in economics, and in insurance, mainly on macroeconomic aspects of risk management. He was research counsel for the German Research Foundation, the German Federal Cartel Office, the Munich Reinsurance Company, and for several national and international Scientific Publishing Companies. His research inspired his teaching: more than forty years mostly at Karlsruhe, but also, among others, at the Universities of Berkeley (UC), Bonn, Fribourg, Lisboa (TU), Los Angeles (USC), Rio de Janeiro (UF), Vancouver (UBC), Vienna (WU), Waterloo (UofW), Würzburg. Winfried Gleißner is a member of the Faculty of Business Administration at the University of Applied Sciences in Landshut, where he is responsible for mathematics and information tech