Stability Analysis of Dynamic Equilibria

✍ Scribed by L.P. Liu

• Publisher: Elsevier Science
• Year: 1995
• Tongue: English
• Weight: 764 KB
• Volume: 193
• Category: Article
• ISSN: 0022-247X
• DOI: 10.1006/jmaa.1995.1268

✦ Synopsis

Information for decision making is classified into four elements: alternatives, criteria, outcomes, and preferences. By the assumption of procedural rationality, a decision maker always collects and uses information necessary to form expectations about various alternatives and makes his choices from Pareto-optimal alternatives. The Pareto-optimality of an alternative depends on evaluation criteria, the assessments of criterion functions, and the existence of other relevant alternatives. Therefore, Pareto-equilibria will dynamically change with time and new information input. This paper studies the stability of dynamic Pareto-equilibria in a process of multicriterion decision making. Both local and global measures of stability are proposed and their equivalence is proved. Conditions for a sequence of equilibria to be stable are identified. 1995 Academic Press, Inc.