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I'm solving the following problem:

$$ \max_\rho \;\; \rho \; \min\left[\left( \frac{bn}{an-bm} \right)[(a-m)-\rho], \frac{b}{a}[a-(p+\rho)]\right]$$

where all constants and variables are defined over $\mathbb{R}^+$.

I feel like there must be a standard way to deal with these kinds of weird optimization functions? I don't want to solve this numerically, I need to do comparative statics at some point.

Even if you don't solve this one, any pointers would be super helpful. Thanks!

2 Answers 2