%0 Journal Article
%T Solving the utility maximization problem with CES and Cobb-Douglas utility function via mathematical inequalities
%A Koji£¿
%A Vedran
%J -
%D 2015
%X Sa£¿etak This paper presents a new, non-calculus approach to solving the utility maximization problem with CES utility function, as well as with Cobb-Douglas utility function in case of n¡İ2 commodities. Instead of using the Lagrange multiplier method or some other method based on differential calculus, these two maximization problems are solved by using Jensen's inequlity and weighted arithmetic-geometric mean (weighted AM-GM) inequality. In comparison with calculus methods, this approach does not require checking the first and the second order conditions
%K Utility maximization problem
%K CES and Cobb-Douglas utility function
%K mathematical inequalities
%K without calculus
%U https://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=208875