Sunday, 2 February 2014

Bounded rationality with intersecting i-lines and genus surface h-lines requires selecting h instead of b for function f(x) with values a,b. As h approaches 0, the slope of the secant line approaches the line tangent to f(x) at x = 0. The derivative is a slope of the tangent line, and tangent slope is the limiting value of secant slope for genus surface h.We can look for stability in terms of perturbation around the equilibrium path and cycles around the equilibrium.The i lines by induction layout the hypothesis which is to be tested.Examining possible world lines we arrive at a logical conclusion by deduction.

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