I am an under-graduate economics student from Australia.
I am writing a thesis in which I attempt to maximise the function Psi=f(W,n,V,M,R,c, tau) for tau, holding all else constant.
My intention is to find tau*=f(W,n,V,M,R,c) then see how this function responds to changes in its arguments.
The parameters W, V, M, R, tau and c are weakly positive.
n >= 2
tau <= (M/n)
I have attached a notebook in which I attempt to solve this problem. Unfortunately the solution cell that I have defined returns an error "unable to solve with the methods available".
If you view the attached file and evaluate the cells under the heading "optimisation" you will see that the final line of the notebook ( where I attempt to solve for tau* where the first order condition of Psi is equal to zero) generates this error.
I am new to Mathematica and aware that I am using a clumsy solution technique. Can you suggest the solution tool that would be most appropriate for my situation?
I believe that the solution to tau* should exist, given the function is continuous in all variables over the specified domain. What do you suggest?
The University of Melbourne
Attachment: Constrained Maximisation.nb, URL: ,