We consider a utility-maximization problem in a general semimartingale financial model, subject to constraints on the number of shares held in each risky asset. These constraints are modeled by ...

This paper studies comparative statics in the consumer utlity maximization problem with two goods. The analysis can be global, and it allows for indivisibilities, discrete changes, and non-binding ...

Despite the ways in which the economic model of utility maximization does not precisely match the reality we all face, it allows us to make some good predictions about the ways people will act under ...

The “unlimited wants” are captured by the notion of utility, and “limited means” refers to a consumer’s finite income or budget. Economists call this a constrained maximization problem.