On the Essential Multidimensionality of an Economic Problem: Towards Tradeoffs-Free Economics

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Title:On the Essential Multidimensionality of an Economic Problem: Towards Tradeoffs-Free Economics
Creators:
Zeleny, Milan
Journal or Publication Title:
AUCO Czech Economic Review, 3, 2, pp. 154-176
Uncontrolled Keywords:Tradeoffs, multiple criteria, decision making, tradeoffs-free, optimization, De novo programming, Pareto-efficiency, added value

Abstract

The foundation of welfare economics is the assumption of Pareto-efficiency and its concept of tradeoffs. Also the production possibility frontier, efficiency frontier, nondominated set, etc., belong to the plethora of tools derived from the Pareto principle. The assumption of tradeoffs does not address the issue of system design or redesign in order to reduce or eliminate tradeoffs as a sure characteristic of suboptimal, inefficient system configuration. In this paper we establish that tradeoffs are not attributes of objectives, criteria or dimensions, as it is habitually assumed, but are the properties of the very sets of possibilities, alternatives or options they purport to value and measure. We use De novo programming, through which the so called feasible set of opportunities can be redefined towards optimal, tradeoffs-free configuration. The implications of tradeoff-free economics are too vast to foresee and elaborate in a single paper; they do touch the very foundations of economic thought. Some numerical examples are given in order to illustrate system-design calculations in linear systems.

Official URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=416CC5F1-12EA-4C1E-AE92-74B158D15346&articleid=32E2CA96-05A1-4811-957C-DEA77CA9A905

Title:On the Essential Multidimensionality of an Economic Problem: Towards Tradeoffs-Free Economics
Creators:
Zeleny, Milan
Uncontrolled Keywords:Tradeoffs, multiple criteria, decision making, tradeoffs-free, optimization, De novo programming, Pareto-efficiency, added value
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HF Commerce
Divisions:Section of external journals > AUCO Czech Economic Review
Journal or Publication Title:AUCO Czech Economic Review
Volume:3
Number:2
Page Range:pp. 154-176
ISSN:1802-4696
Publisher:Charles University
Related URLs:
URLURL Type
http://auco.cuni.czPublisher
http://avi.lib.cas.cz/node/183Publisher
ID Code:4454
Item Type:Article
Deposited On:27 Jul 2009 16:19
Last Modified:27 Jul 2009 14:19

Citation

Zeleny, Milan (2009) On the Essential Multidimensionality of an Economic Problem: Towards Tradeoffs-Free Economics. AUCO Czech Economic Review, 3 (2). pp. 154-176. ISSN 1802-4696

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