Business decisions
Real business decisions can be categorized in two classes: marginal decisions of resource allocation and inframarginal networking decisions. Here inframarginal analysis is the total cost-benefit analysis across corner solutions in addition to the marginal analysis of each corner solution. If the optimum value of a decision variable takes on its upper or lower bound (usually zero), the optimal decision is a corner solution. Formally, it relates to nonlinear programming, mixed integer programming, dynamic programming, the control theory, and other non-classical mathematical programming. In many cases, the inframarginal networking decision is much more important than the marginal decision. But since the marginal revolution, economists have focused their attention on the marginal analysis of resource allocation. The following example illustrates why the inframarginal decision might be more important than the marginal decision.
From: Inframarginal Versus Marginal Analysis of Networking Decisions and e-Commerce
by Yew-Kwang Ng
September 12, 2009 5:35 am 
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