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Economic optimization by compromise programming: The joint production model
Author(s) -
Ballestero Enrique,
Romero Carlos
Publication year - 1993
Publication title -
journal of multi‐criteria decision analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.462
H-Index - 47
eISSN - 1099-1360
pISSN - 1057-9214
DOI - 10.1002/mcda.4020020203
Subject(s) - compromise , profit (economics) , production (economics) , computer science , mathematical optimization , point (geometry) , economics , joint (building) , key (lock) , operations research , microeconomics , mathematics , engineering , sociology , architectural engineering , social science , geometry , computer security
In a basic microeconomic model (joint production and consumer's utility curves) three key optima appear: the best technological mix, the maximum profit point and the consumer's utility optimum. Compromise analysis can help to clarify their connections. This paper and other recent research attempt to specify the conditions which guarantee that these three optima coincide. Thus compromise programming becomes a valuable surrogate of economic optimization.