Date: 21 Apr 2010

Goal Programming: From Constrained Regression to Bounded Rationality Theories

* Final gross prices may vary according to local VAT.

Get Access

Abstract

The purpose of the paper is to provide a critical overview of the decisionmaking approach known as Goal Programming (GP). The paper starts by tracing the origins of GP back to work by Charnes and Cooper at the end of the 1950s in fields like non-parametric regression, and the analysis of contradictions in non-solvable linear programming problems. After chronicling its evolution from its original form into a powerful decision-making method, the GP approach is linked with the Simonian bounded rationality theories based upon the ‘satisficing’ concept. In this way, several GP models are presented as fruitful vehicles for implementing this kind of ‘satisficing’ philosophy. The last part of the paper presents some critical issues and extensions of the GP approach. The chapter ends by discussing potential extensions, as well as GP’s role for solving complex real-world problems in the near future.