Prove the fifth fact from the subsection on syndicate


Prove the fifth fact from the subsection on syndicate theory. The key is to find out the right values for the constants ki . The ki are defined so that the first-order conditions all hold and the adding up condition holds. There are I +N unknowns (each value of ki and each multiplier µn ) and I N+ 1equations (IN first-order conditions and one adding up constraint), so you can see that some of the equations must be redundant, which is why this is such a special case.

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Microeconomics: Prove the fifth fact from the subsection on syndicate
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