Chapter 6: Doing the "Best" We Can

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Graphical Optimization - Budget Constraint & Indifference Curves     Voice-Over

Different Choice Sets, Different Tastes - but Same Tastes "at the Margin"     Voice-Over

Choice Sets & Indifference Maps - Corner Solutions     Voice-Over

Choice Sets & Indifference Maps - Ruling out Corner Solutions     Voice-Over

Kinked Budget Constraints, Optimal Bundles and Indifference Curves - "Outward Kink"     Voice-Over

Kinked Budget Constraints, Optimal Bundles and Indifference Curves - "Inward Kink"     Voice-Over

Convexity and Non-convexity in Budget Constraints and Choice Sets - Best Bundles     Voice-Over

Non-Convexities in Taste     Voice-Over

Converting the Constrained Optimization Problem into an Unconstrained Optimization Problem
Unconstrained Optimization: Derivative is Zero at the Optimum     Voice-Over

Optimization with Missing Constraint: Quasilinear Utility Function

A Clear Corner Solution (a) with an Economically Nonsensical "Interior Solution" (b)

u(x₁,x₂) = x₂ + a ln x₁ with a = 25     Voice-Over

Ruling out Corner Solutions

The Presence of Non-Essential Goods does not have to Result in a Corner Solution     Voice-Over

Non-Convex Budget Constraints, Optimal Bundles and Indifference Curves - without Kink

Non-Convex Budgets: "First Order Conditions" can hold at a bundle (A) that is not an Optimum     Voice-Over

Estimation Non-Convex Tastes from Observed Choices

Non-Convex Tastes: "First Order Conditions" can hold at a bundle (C) that is not an Optimum     Voice-Over

Non-Convexities in Choice Sets

Mathematical Optimization on Kinky Budgets     Voice-Over