The operation of infimal/supremal convolution in mathematical economics

Abstract

The infimal convolution operation arises in mathematical economics in the analysis of several problems. In this paper we first present a survey and summarize two previous papers by the authors on the classic firm's cost-minimization problem. Moreover, we present a new application: the analytical solution of the utility maximization problem which we shall obtain applying the supremal convolution operation.

Keywords:

• mathematical economics
• infimal/supremal convolution
• firm's cost-minimization problem
• utility maximization problem

2010 AMS Subject Classification:

• 91B02

JEL Classification:

• D24