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A formal specification of multicriteria economics

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  • Francisco Salas-Molina

    (Universitat de València)

Abstract

Economic theory usually focuses on the optimization of a single criterion subject to a set of rigid constraints. Nevertheless, many decisions in economics require to find a balance between multiple and possibly conflicting criteria to obtain a more realistic representation of actual world problems. In addition, there is a lack of a formal specification of multicriteria economic reasoning. In an attempt to strengthen the links between economics and operations research, we propose a formal approach that underpins an economy in which decisions are made by applying multiple criteria methods. From the analysis of the intersection between economic problems and multiple criteria decision making, we find theoretical patterns underlying multicriteria economics. This formal specification allows us to introduce a set of principles that facilitates the development of more realistic multicriteria economics policies.

Suggested Citation

  • Francisco Salas-Molina, 2021. "A formal specification of multicriteria economics," Operational Research, Springer, vol. 21(4), pages 2627-2650, December.
    • Handle: RePEc:spr:operea:v:21:y:2021:i:4:d:10.1007_s12351-019-00528-7
    DOI: 10.1007/s12351-019-00528-7
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    1. Francisco Salas-Molina & David Pla-Santamaria & Fernando Mayor-Vitoria & Maria Luisa Vercher-Ferrandiz, 2021. "A Multicriteria Extension of the Efficient Market Hypothesis," Mathematics, MDPI, vol. 9(6), pages 1-16, March.

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