Spinoza, Leibniz, Kant, and Weyl

TL;DR

This paper introduces Quadratic Finance, demonstrating through mathematical modeling that it maximizes social utility and is the unique optimal funding mechanism within a simple linear framework.

Contribution

It provides a formal mathematical analysis showing that Quadratic Finance uniquely maximizes social utility in a linear model.

Findings

QF maximizes social utility in the model

QF is the unique optimal solution

Mathematical differentiation confirms optimality

Abstract

The paper describes a funding mechanism called Quadratic Finance (QF) and deploys a bit of calculus to show that within a very clean and simple linear model QF maximizes social utility. They differentiate the social utility function. The mathematical content of this note is that by taking one further derivative, one may also deduce that QF is the unique solution.