Optimization methods for a stakeholder society : a revolution in economic thinking by multi-objective optimization / by Willem K. Brauers.

Format:

Book

Author/Creator:

Brauers, W. K. (Willem K.)

Series:

Nonconvex optimization and its applications ; v. 73.

Nonconvex optimization and its applications ; v. 73

Language:

English

Subjects (All):

Economic policy--Mathematical models.

Economic policy.

Management--Mathematical models.

Management.

Decision making--Mathematical models.

Decision making.

Mathematical optimization.

Nonlinear programming.

Physical Description:

x, 342 pages ; 25 cm.

Other Title:

Revolution in economic thinking by multi-objective optimization

Place of Publication:

Boston : Kluwer Academic Publishers, [2004]

Contents:

Part 1 The Link with More Traditional Economics

Chapter 1 New economics against the history of economic thought 9

1.1 Classical economists about objectives 9

1.2 General economic interdependence 9

1.3 The partial approach 10

1.4 The rise of mathematics in economics 12

Chapter 2 Success and shortcomings of econometric models 17

2.1 Significance of econometric models 17

2.2 Definition of I/O and its relation to the Walrasian system 20

2.3 SAM and General Equilibrium Models 21

2.4 The stability of the technical coefficients and the inverse matrix 22

2.5 Structural changes and Input-Output 24

2.6 Benchmarking and Input-Output 26

2.7 Multiple objectives and multiple units in input-output analysis 26

2.8 Conclusions about traditional model building for application 28

Part 2 The Advent of New Economics

Chapter 1 Creative and prospective thinking 37

1.2 Open discussion methods 38

1.3 Nominal methods 39

1.4 Nominal Group Technique 44

1.5 The Cross-Impact Technique 47

Annex 1 A nominal group technique on the economic situation of the developing countries over the period 1987-1996 49

Annex 2 Application for the economic situation of Lithuania over the period (2002-2011) 53

Annex 3 Nominal Group Technique on the business outlook of the facilities sector of Lithuania over the period (2003-2012) 55

Chapter 2 Simulation and Sensitivity Analysis 65

2.1 Categories of Simulation 65

2.2 Parametric Analogs 68

Chapter 3 Scenario Writing 71

3.1 Origin and classification 71

3.3 Some weak points of Scenario Writing 73

Annex 1 Economic policy in Tanzania with different input-output scenarios as a basis 75

Annex 2 Scenarios for Lithuania 2002 - 2011 77

Annex 3 Scenarios for the future of the facilities sector of Lithuania 2003 - 2012 81

Part 3 New Economics for a Stakeholder Society

Chapter 1 Introduction to multiple objective utility theory 87

1.1 Why from old to new economics? 87

1.2 Value or utility? The risk problem 89

1.3 Multiple Objective Utility Theory inside the theory of the statistical universe 91

1.4 Measurement of attributes by indicators 93

1.5 Measurement of quality 97

1.6 Hierarchy of objectives. What does hierarchy mean? 99

1.7 A hierarchy of objectives for the Democratic Republic of Congo 100

1.8 Conflict resolution 105

1.9 Instruments for a new economic policy 105

Chapter 2 Some traditional methods to approach the problem of multiple objectives 111

2.1 Cost-Benefit Analysis and Decision Tree Analysis 111

2.2 Cost-Effectiveness Analysis and Fractional Programming 112

2.3 The Scorecard Method 113

2.4 The weighting concept 114

2.5 The approach based on a series of binary comparisons 118

Chapter 3 Multifarious comparisons for objectives and attributes 125

3.1 The approach of a complete a priori priority between the multifariously compared objectives 125

3.2 The filtering stage 128

3.3 The possibility of a dominance stage 129

3.4 Dominance and the law of decreasing marginal utility 131

Chapter 4 The indifference method 139

4.1 The filtering stage of the indifference method 139

4.2 The indifference stage of the indifference method 139

Annex 1 Case study: the indifference method for arms procurement 143

Chapter 5 How to optimize in a stakeholder society? 147

Part 4 Reference Point Theory a Method to Compare Until Now Incomparable Alternatives

Chapter 1 Reference point theory as a solution for multiobjective utility 151

1.1 The ranking stage for the until now incomparable 151

1.2 Generalization for the until now incomparable alternatives 152

1.3 Indifference curve analysis and reference point theory 153

1.4 Consideration of the Maximal Criterion Reference Point 157

1.5 The Utopian Criterion Vector and the Aspiration Criterion Vector 158

1.6 The normalization of attributes in reference point theory 158

1.7 How to measure the distance between the discrete points of the alternatives and the reference point? 159

1.8 The problem of an efficient point that is not proper efficient and the reference point theory 161

1.9 Is there a the danger of a reverse order? 162

1.10 Alternatives generated during the process: the continuous case 163

1.12 Case study: how to choose a wife? 165

Chapter 2 Project planning, analysis and evaluation 171

2.3 The selection of the project 172

2.4 Different competing projects 175

2.5 Multiple objectives in industrial management 178

Chapter 3 Reference point theory in seaport planning 189

3.1 Comparison of effectiveness of different concepts of seaports in an analytical and prospective way, including new developments 189

3.2 The filtering stage in seaport planning 190

3.3 The ranking stage in seaport planning 194

3.4 Appraisal of projects for the installation of a container terminal in a seaport of a developing country 196

Chapter 4 Privatization and reference point theory 205

4.1 The problem 205

4.2 The filtering stage in the case of privatization 206

4.3 An indifference stage in privatization 206

4.4 Simulation exercise for privatization in Ukraine 207

4.5 Some practical consequences of application of reference point theory for privatization 211

Chapter 5 Marketing with multiple objectives for consumer goods with applications for a department store 215

5.2 Filtering and normalization in the case of a department store 215

5.3 The application of the reference point theory with maximal criterion values for a department store 219

5.4 A chance for an in-between alternative 220

5.5 Conclusions about reference point theory in connection with the expansion of a department store 222

Part 5 A Multiplicative Form for Multiobjective Optimization

Chapter 1 The multiplicative representation of multiobjective optimization 227

1.1 Forms of the utility function 227

1.2 Bilinear and multilinear forms 228

1.3 The full-multiplicative form 229

1.4 What about the unit of utility u[subscript j]? 231

1.6 Is normalization still necessary? 233

1.7 Objectives moving in a different direction 236

1.9 Multiplicative form on the basis of geometric means 238

1.10 The danger of a reverse order in the multiplicative form 238

1.11 Attributes of objectives raised to powers 239

1.12 Some restrictions of the multiplicative representation 243

Chapter 2 The multiplicative representation in scenarios for an optimal economic policy in Belgium 247

2.1 Political and economic structure of Belgium 247

2.2 Eleven scenarios for an optimal economic growth in Belgium 248

2.3 The ranking after the application of the multiplicative representation 250

2.4 Is it possible to stress the importance of some objectives? 253

2.5 Relevance of attributes raised to powers for an optimal Belgian economic policy 254

Chapter 3 An application for arms procurement 261

3.1 The application of the full-multiplicative form 261

3.2 Does there exist a danger for a reverse order? 263

3.3 Conclusions concerning the choice of a fighter plane in Belgium 265

Chapter 4 Multiplicative representation and project planning for a developing country 267

4.1 A national investment board in a developing country 267

4.2 The filtering stage in project planning for a developing country 269

4.3 Indifference or ranking in project planning for a developing country 270

Chapter 5 An optimal input-output structure for a developing country such as Tanzania 281

5.1 Some characteristics of input- output in developing countries 281

5.2 Economic policy with several input-output scenarios as a basis in a developing country 282

5.3 Linkages between the scenarios and the economic policy of Tanzania 285

Part 6 Ratio Analysis a Separate Method for Multiple Objectives Optimization?

Chapter 1 Mechanical methods and multiobjective optimization 293

1.1 Ratio analysis a new approach? 293

1.2 The choice between different ratio systems 293

1.3 Ratio analysis applied for multiobjective

optimization 295

Chapter 2 Ratio analysis for a department store 297

2.1 One of the alternatives is taken as a reference 297

2.2 The Van Delft and Nijkamp method of maximum value 298

2.3 The Van Delft and Nijkamp method of square roots 298

2.4 The Voogd ratios 299

Annex 1 Some methods of ratio analysis applied for a department store 301

Annex 2 The Voogd ratios and the Van Delft and Nijkamp method of square roots applied for a department store 307

Chapter 3 Ratio analysis for arms procurement 311

3.1 The choice of fighter planes 311

3.2 Ratios analysis as applied for arms procurement 313

3.3 Conclusions on arms procurement 316

Chapter 4 Ratio analysis and project planning for a developing country 317

4.1 The policy of a national investment board in a developing country 317

4.2 The indifference or the ranking stage with ratio analysis for a developing country 318

Chapter 5 Conclusions on ratio systems 323

5.1 Choice of ratios 323

5.2 Significance of the ratio system 324

5.3 The ratio system as a new method for multiobjective optimization 324.

Notes:

Includes bibliographical references and index.

ISBN:

1402076819

OCLC:

53145394