Multiple criteria decision making and its applications to economic problems / by Enrique Ballestero and Carlos Romero.

Ballestero, Enrique.

Preface	v
Chapter 1. Multiple Criteria Decision Making: An Introduction	1-10
	1. Traditional Paradigm for Decision Making: Comments and Criticisms	1
	2. An Illustrative Example	3
	3. Some Basic Definitions	5
	4.Two Intermediate Concepts: Pareto Optimality and Trade-Offs amongst
	Criteria	7
	5. Multiple Criteria Decision Making: A Historical Sketch	9
Chapter 2. Multiobjective Optimisation Methods	11-30
	1. Basic Aspects	11
	2. Techniques for the Generation of the Efficient Set	13
	3. An Illustrative Example	15
	4. Compromise Programming: Methodological Aspects	19
	5. The Concept of Compromise Set: Yu's Theorem	24
	6. Two Economic Examples of Compromise Models	25
		6.1 Equilibrium of a Monopolist	25
		6.2 The " Leisure-Work" Dilemma	26
	Appendix	29
Chapter 3. Satisficing MCDM Approaches: Goal Programming	3149
	1. Basic Aspects	31
	2. Weighted Goal Programming (WGP)	33
	3. Lexicographic Goal Programming (LGP)	34
	4. The Sequential Method for Lexicographic Optimisation	36
	5. Goal Programming Extensions	41
	6. Some Critical Issues in Goal Programming	42
	7. Two Economic Examples of GP Models	46
		7.1 Satisficing Monopolist Equilibrium	46
		7.2 A Satisficing Worker's Enterprise Equilibrium	48
Chapter 4. Multiattribute Utility Approaches	51-62
	1. The Concept of Multiattribute Utility Function	51
	2.Utility Decomposition: Preferential and Utility Independence Conditions 52
	3. Determination of Multiattribute Utility Functions	55
	4. A MAUT Application	56
	5. A Final Reflection	61
Chapter 5. Miscellaneous Questions	63-75
	1. Purpose	63
	2. Some Comments on other MCDM Approaches	63
	3. Links between Compromise Programming and Goal Programming	65
	4. A Utility Interpretation of Compromise Programming and Goal
     Programming                                                                      68
     5. Choosing a MCDM Technique: Some Considerations                                  73
Chapter 6. A First Linkage: CP and Bi-Attribute Utility	77-101
	1. Introduction	77
	2. Utility Meaning of the Ideal Point	78
	3. Preferences and the Compromise Choice	84
	4. Economic Meaning of Approximation to the Ideal	87
	5. A Bounding Model for Standard Individuals: The Case of the "Average"
	Investor	89
	6. An Example of Portfolio Selection	93
	7. The Case of a Decision-Maker with Particular Preferences	97
	8. Some Conclusions and Comments	100

Chapter 7. Joint Production Shadow Prices and the Three Optima Theorem
		103-123
	1. Introduction	103
	2. Shadow Prices: A General Theorem	104
	3. A Car-Truck Illustrative Example of Shadow Prices	109
	4. Three Crucial Optima for an Industry	Ito
	5. Anchor Values and Market Prices: An Introductory but Restrictive
	Link	111
	6. A Less Restrictive Approach to the Anchor Value-Market Price Link	113
	7. Industry's Equilibrium and the Best-Compromise Solutions	114
	8. The Three Optima Theorem	117
	9. Extensions	121
	1O.Conclusions	122
Chapter 8. A Further Linkage: Multi-Attribute Utility in a Risk Aversion
	Context	125-154
	1. Introduction.	125
	2. Notation and Definitions	126
	3. A Reminder on Utility Functions with Separable Variables and their
	Standard Optimisation	127
	4. The CP Distance Form as a Utility Function	129
	5. A Case of Health Care Management	134
	6. Searching for the Structure of the Utility Functions	138
	7. The Structure of Uni-Dimensional Utility Functions	140
	8. Main Assumption	141
	9. Economic Meaning of Parameters	142
	10. A More Extensive Approach to Utility and the Compromise Linkage	144
	11. Specification and Optimisation	145
	12. The Illustrative Work-Leisure Dilemma Again	147
	13. Selecting a Car from Utility Characteristics: A Multiattribute Case	151
	14. Conclusions	153
References	155-158
Index	159-160