Optimization Methods for a Stakeholder Society: A Revolution in Economic Thinking by Multi-objective Optimization / Edition 1 by W.K. Brauers | 9781402076817 | Hardcover | Barnes & Noble
Optimization Methods for a Stakeholder Society: A Revolution in Economic Thinking by Multi-objective Optimization / Edition 1

Optimization Methods for a Stakeholder Society: A Revolution in Economic Thinking by Multi-objective Optimization / Edition 1

by W.K. Brauers

ISBN-10: 1402076819

ISBN-13: 9781402076817

Pub. Date: 11/30/2003

Publisher: Springer US

For both public and private managers, the book Optimization Methods for a Stakeholder Society is today's key to answer the problem of a sustainable development world. This world has to take into account the meaning of all stakeholders involved and has to reconcile a number of objectives, such as economic growth, employment and preservation of the


For both public and private managers, the book Optimization Methods for a Stakeholder Society is today's key to answer the problem of a sustainable development world. This world has to take into account the meaning of all stakeholders involved and has to reconcile a number of objectives, such as economic growth, employment and preservation of the ecosystem. Traditional methods, such as cost-benefit, are outmoded as they translate all these objectives into monetary costs, a materialistic approach. On the contrary, objectives have rather to stick to their own units, eventually indicators.

Product Details

Springer US
Publication date:
Nonconvex Optimization and Its Applications (closed) Series, #73
Edition description:
Product dimensions:
6.10(w) x 9.25(h) x 0.03(d)

Table of Contents

Which economics1
The aim of this work2
Notes introduction5
Part 1The Link with More Traditional Economics
Chapter 1New economics against the history of economic thought9
1.1Classical economists about objectives9
1.2General economic interdependence9
1.3The partial approach10
1.4The rise of mathematics in economics12
Notes chapter 114
Chapter 2Success and shortcomings of econometric models17
2.1Significance of econometric models17
2.2Definition of I/O and its relation to the Walrasian system20
2.3SAM and General Equilibrium Models21
2.4The stability of the technical coefficients and the inverse matrix22
2.5Structural changes and Input-Output24
2.6Benchmarking and Input-Output26
2.7Multiple objectives and multiple units in input-output analysis26
2.8Conclusions about traditional model building for application28
Notes chapter 230
Part 2The Advent of New Economics
Chapter 1Creative and prospective thinking37
1.1Some preliminary definitions37
1.2Open discussion methods38
1.3Nominal methods39
1.4Nominal Group Technique44
1.5The Cross-Impact Technique47
Annex 1A nominal group technique on the economic situation of the developing countries over the period 1987-199649
Annex 2Application for the economic situation of Lithuania over the period (2002-2011)53
Annex 3Nominal Group Technique on the business outlook of the facilities sector of Lithuania over the period (2003-2012)55
Notes chapter 161
Chapter 2Simulation and Sensitivity Analysis65
2.1Categories of Simulation65
2.2Parametric Analogs68
2.3Sensitivity Analysis69
Notes chapter 270
Chapter 3Scenario Writing71
3.1Origin and classification71
3.2How to write Scenarios?71
3.3Some weak points of Scenario Writing73
Annex 1Economic policy in Tanzania with different input-output scenarios as a basis75
Annex 2Scenarios for Lithuania 2002 - 201177
Annex 3Scenarios for the future of the facilities sector of Lithuania 2003 - 201281
Notes chapter 383
Part 3New Economics for a Stakeholder Society
Chapter 1Introduction to multiple objective utility theory87
1.1Why from old to new economics?87
1.2Value or utility? The risk problem89
1.3Multiple Objective Utility Theory inside the theory of the statistical universe91
1.4Measurement of attributes by indicators93
1.5Measurement of quality97
1.6Hierarchy of objectives. What does hierarchy mean?99
1.7A hierarchy of objectives for the Democratic Republic of Congo100
1.8Conflict resolution105
1.9Instruments for a new economic policy105
Notes chapter 1107
Chapter 2Some traditional methods to approach the problem of multiple objectives111
2.1Cost-Benefit Analysis and Decision Tree Analysis111
2.2Cost-Effectiveness Analysis and Fractional Programming112
2.3The Scorecard Method113
2.4The weighting concept114
2.5The approach based on a series of binary comparisons118
Notes chapter 2123
Chapter 3Multifarious comparisons for objectives and attributes125
3.1The approach of a complete a priori priority between the multifariously compared objectives125
3.2The filtering stage128
3.3The possibility of a dominance stage129
3.4Dominance and the law of decreasing marginal utility131
Notes chapter 3137
Chapter 4The indifference method139
4.1The filtering stage of the indifference method139
4.2The indifference stage of the indifference method139
Annex 1Case study: the indifference method for arms procurement143
Notes chapter 4145
Chapter 5How to optimize in a stakeholder society?147
Part 4Reference Point Theory a Method to Compare Until Now Incomparable Alternatives
Chapter 1Reference point theory as a solution for multiobjective utility151
1.1The ranking stage for the until now incomparable151
1.2Generalization for the until now incomparable alternatives152
1.3Indifference curve analysis and reference point theory153
1.4Consideration of the Maximal Criterion Reference Point157
1.5The Utopian Criterion Vector and the Aspiration Criterion Vector158
1.6The normalization of attributes in reference point theory158
1.7How to measure the distance between the discrete points of the alternatives and the reference point?159
1.8The problem of an efficient point that is not proper efficient and the reference point theory161
1.9Is there a the danger of a reverse order?162
1.10Alternatives generated during the process: the continuous case163
1.12Case study: how to choose a wife?165
Notes chapter 1169
Chapter 2Project planning, analysis and evaluation171
2.1An example of project planning171
2.2The objectives for project planning172
2.3The selection of the project172
2.4Different competing projects175
2.5Multiple objectives in industrial management178
2.6Project evaluation183
Notes chapter 2187
Chapter 3Reference point theory in seaport planning189
3.1Comparison of effectiveness of different concepts of seaports in an analytical and prospective way, including new developments189
3.2The filtering stage in seaport planning190
3.3The ranking stage in seaport planning194
3.4Appraisal of projects for the installation of a container terminal in a seaport of a developing country196
Notes chapter 3204
Chapter 4Privatization and reference point theory205
4.1The problem205
4.2The filtering stage in the case of privatization206
4.3An indifference stage in privatization206
4.4Simulation exercise for privatization in Ukraine207
4.5Some practical consequences of application of reference point theory for privatization211
Notes chapter 4213
Chapter 5Marketing with multiple objectives for consumer goods with applications for a department store215
5.1Objectives for a department store215
5.2Filtering and normalization in the case of a department store215
5.3The application of the reference point theory with maximal criterion values for a department store219
5.4A chance for an in-between alternative220
5.5Conclusions about reference point theory in connection with the expansion of a department store222
Notes chapter 5223
Part 5A Multiplicative Form for Multiobjective Optimization
Chapter 1The multiplicative representation of multiobjective optimization227
1.1Forms of the utility function227
1.2Bilinear and multilinear forms228
1.3The full-multiplicative form229
1.4What about the unit of utility u[subscript j]?231
1.5An illustrative application232
1.6Is normalization still necessary?233
1.7Objectives moving in a different direction236
1.8An illustrative example with objectives moving in a different direction237
1.9Multiplicative form on the basis of geometric means238
1.10The danger of a reverse order in the multiplicative form238
1.11Attributes of objectives raised to powers239
1.12Some restrictions of the multiplicative representation243
Notes chapter 1244
Chapter 2The multiplicative representation in scenarios for an optimal economic policy in Belgium247
2.1Political and economic structure of Belgium247
2.2Eleven scenarios for an optimal economic growth in Belgium248
2.3The ranking after the application of the multiplicative representation250
2.4Is it possible to stress the importance of some objectives?253
2.5Relevance of attributes raised to powers for an optimal Belgian economic policy254
Notes chapter 2259
Chapter 3An application for arms procurement261
3.1The application of the full-multiplicative form261
3.2Does there exist a danger for a reverse order?263
3.3Conclusions concerning the choice of a fighter plane in Belgium265
Notes chapter 3266
Chapter 4Multiplicative representation and project planning for a developing country267
4.1A national investment board in a developing country267
4.2The filtering stage in project planning for a developing country269
4.3Indifference or ranking in project planning for a developing country270
Notes chapter 4279
Chapter 5An optimal input-output structure for a developing country such as Tanzania281
5.1Some characteristics of input- output in developing countries281
5.2Economic policy with several input-output scenarios as a basis in a developing country282
5.3Linkages between the scenarios and the economic policy of Tanzania285
Notes chapter 5289
Part 6Ratio Analysis a Separate Method for Multiple Objectives Optimization?
Chapter 1Mechanical methods and multiobjective optimization293
1.1Ratio analysis a new approach?293
1.2The choice between different ratio systems293
1.3Ratio analysis applied for multiobjective optimization295
Notes chapter 1296
Chapter 2Ratio analysis for a department store297
2.1One of the alternatives is taken as a reference297
2.2The Van Delft and Nijkamp method of maximum value298
2.3The Van Delft and Nijkamp method of square roots298
2.4The Voogd ratios299
Annex 1Some methods of ratio analysis applied for a department store301
Annex 2The Voogd ratios and the Van Delft and Nijkamp method of square roots applied for a department store307
Chapter 3Ratio analysis for arms procurement311
3.1The choice of fighter planes311
3.2Ratios analysis as applied for arms procurement313
3.3Conclusions on arms procurement316
Chapter 4Ratio analysis and project planning for a developing country317
4.1The policy of a national investment board in a developing country317
4.2The indifference or the ranking stage with ratio analysis for a developing country318
Chapter 5Conclusions on ratio systems323
5.1Choice of ratios323
5.2Significance of the ratio system324
5.3The ratio system as a new method for multiobjective optimization324
Notes chapter 5328
Chapter 6General conclusions of the book329

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