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saddle-point


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A point at which a function of several variables is at a maximum for movement in some directions and a minimum for movement in the remaining directions. Assume f(x) is to be maximized subject to g(x) ≥ 0, where x = (x1,…, xn). Then the maximum occurs at a saddle point of the Lagrangian function

Lf(x) + λg(x),

with L maximized for each xi and minimized for λ.

Subjects: Mathematics — Economics.


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