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Achieving Desired Performance through Constraint: Application to Pollution-Production Cycles

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  • Christopher Pawlowski

    (University of California, Berkeley)

Abstract

We examine a simple, abstract representation of a semi-closed system comprising agents and buffers. The agents are looked upon as processors moving mass (raw materials and products) between buffers (e.g. the atmosphere). The fundamental management challenge is to maintain the level of material (e.g. pollutants) in system buffers within specified constraints. These constraints capture global performance goals such as sustainability, clean air/water, ecosystem health, etc. A hierarchical approach to system regulation is taken. Rather than specifying agent behavior, a central planner specifies constraints on agent activity. This approach allows agents reasonable freedom in their individual operation while guaranteeing desired global performance.

Suggested Citation

  • Christopher Pawlowski, 1999. "Achieving Desired Performance through Constraint: Application to Pollution-Production Cycles," Computing in Economics and Finance 1999 321, Society for Computational Economics.
    • Handle: RePEc:sce:scecf9:321
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