Mathematics has long played a crucial role in various aspects of economic theory, as

highlighted in the article "Some Mathematical Methods and Techniques in Economics" by I. N.

Herstein. The author emphasizes the significance of mathematical economics and its rapid expansion,
acknowledging the limited awareness among mathematicians and economists regarding the aims,
methods, and successes of this field. This lack of awareness is attributed to the historical reliance on
traditional economic tools and the perception that mathematics in economics is confined to simple
applications, such as price-demand relations and statistical analysis .

The historical evolution of mathematical methods in economics is evident in the transition

from the predominant use of calculus to more modern and powerful mathematical techniques.
Initially, calculus served as the primary tool in mathematical economics, particularly in the study of
price-demand relations. However, the limitations of calculus, such as the need for differentiability and
its inability to address complex and discrete situations, led to the exploration of more advanced
mathematical methods. This shift was further fueled by the success of modern mathematical
developments in other fields, prompting economists to broaden their mathematical repertoire.

One notable milestone in the integration of mathematics and economics was the publication
of "The Theory of Games and Economic Behavior" by von Neumann and Morgenstern, which
dispelled misconceptions about the scope of mathematics in economics and highlighted its potential
applications in economic behavior. Subsequently, the application of mathematical theorems, such as
the fixed point theorem, facilitated the rigorous proof of the existence of equilibrium points in
economic systems .

The article also delves into specific mathematical concepts applied in economic theory, such
as the use of complete ordering to define optimal social states and the diverse approaches, including
the orthodox calculus and the theory of convex sets, employed in addressing problems in Welfare
Economics. This exemplifies the multifaceted nature of mathematical methods and techniques in
tackling economic phenomena.

In conclusion, the historical narrative presented by Herstein underscores the transformative

impact of mathematical methods and techniques in economics. From the early reliance on calculus to
the embrace of more advanced mathematical tools, the evolution reflects a quest for generality,
precision, and applicability in economic analysis. The article serves as a testament to the dynamic
interplay between mathematics and economics, shedding light on the continuous exploration of
mathematical frontiers to enrich economic theory and practice.