Advertisement

Constructing Separable Objective Functions

  • Andranik Tangian
Conference paper

Abstract

A separable objective function is approximately constructed from a few two-dimensional indifferences. The Hausdorff distance between the true and the approximate preference is estimated. With a counterexample it is shown that this estimate cannot be improved. The model is illustrated by constructing a separable objective function of German economic policy in four target variables: Inflation, Unemployment, GNP growth, and Increase in public debt.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Debreu, G. (1960), Topological methods in cardinal utility theory. In: K. Arrow (Ed.). Mathematical methods in the social sciences, 1959, Stanford. Stanford University Press, 16–26.Google Scholar
  2. 2.
    Deutsche Bundesbank (1995), Monatsbericht, 47(8).Google Scholar
  3. 3.
    Fishburn, P.C. (1967), Methods of Estimating Additive Utilities, Management Science, 7, 435–453.CrossRefGoogle Scholar
  4. 4.
    Kelley, J.L. (1955), General topology. Van Nostrand, London New York.Google Scholar
  5. 5.
    Shilov, G.E. (1973), Elementary Real and Complex Analysis. M.I.T. Press, Cambridge, Mass.Google Scholar
  6. 6.
    Tangian, A.S., and Gruber, J. (Eds.) (1997), Constructing Scalar-Valued Objective Functions. Springer, Berlin (Lecture Notes in Economics and Mathematical Systems 453).Google Scholar
  7. 7.
    Wakker, R. (1989), Additive Representations of Preferences: A New Foundation of Decision Analysis. Kluwer, Dordrecht.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2001

Authors and Affiliations

  • Andranik Tangian
    • 1
  1. 1.University of HagenHagenGermany

Personalised recommendations