Abstract
This paper formulates a dynamic compromise model where criteria are state variables evolving in time. Motion equations are determined under a few widely accepted assumptions in decision theory. It is noteworthy to point out that the equilibrium is reached at the L∞ bound of the compromise set. Applications in several fields (economics, sociology, ecology, etc.) seem to be large. We highlight specially two applications: (a) the choice of consumer goods aggregates and (b) the Pigovian-Coasian reparation of a negative externality. Finally, some properties and tentative extensions are indicated.
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© 1996 Springer-Verlag Berlin Heidelberg
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Ballestero, E., Romero, C. (1996). Dynamic Choices in Economics: A Compromise Approach. In: Tamiz, M. (eds) Multi-Objective Programming and Goal Programming. Lecture Notes in Economics and Mathematical Systems, vol 432. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-87561-8_2
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DOI: https://doi.org/10.1007/978-3-642-87561-8_2
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-60662-8
Online ISBN: 978-3-642-87561-8
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