Characterizing Pareto Improvements in an Interdependent Demand System
نویسندگان
چکیده
Interdependent preferences generally imply Pareto inefficiency. For a general demand system, we provide a characterization of Pareto improvements. For a prominent parametric specification, the Linear Expenditure System, we characterize in detail the welfare loss associated with interdependent preferences. Using an estimated empirical model of this kind, we calculate the compensating variation corresponding to the welfare loss.
منابع مشابه
The Welfare Loss from Interdependent Preferences
Interdependent preferences generally imply Pareto inefficiency. For a general demand system, we characterize Pareto improvements, as well as the taxes and subsidies that reduce the welfare loss from such preferences. Using an estimated empirical model of this kind, we calculate the compensating variation corresponding to the welfare loss.
متن کاملInvestigating Pareto Front Extreme Policies Using Semi-distributed Simulation Model for Great Karun River Basin
This study aims to investigate the different management policies of multi-reservoir systems and their impact on the demand supply and hydropower generation in Great Karun River basin. For this purpose, the semi-distributed simulation-optimization model of the Great Karun River basin is developed. Also, the multi-objective particle swarm optimization algorithm is applied to optimize the develop...
متن کاملRecurrence Relations for Quotient Moment of Generalized Pareto Distribution Based on Generalized Order Statistics and Characterization
Generalized Pareto distribution play an important role in reliability, extreme value theory, and other branches of applied probability and statistics. This family of distributions includes exponential distribution, Pareto distribution, and Power distribution. In this paper, we established exact expressions and recurrence relations satisfied by the quotient moments of generalized order statistic...
متن کاملA Comparison of Four Multi-Objective Meta-Heuristics for a Capacitated Location-Routing Problem
In this paper, we study an integrated logistic system where the optimal location of depots and vehicles routing are considered simultaneously. This paper presents a new mathematical model for a multi-objective capacitated location-routing problem with a new set of objectives consisting of the summation of economic costs, summation of social risks and demand satisfaction score. A new multi-objec...
متن کاملEvaluating the Effectiveness of Integrated Benders Decomposition Algorithm and Epsilon Constraint Method for Multi-Objective Facility Location Problem under Demand Uncertainty
One of the most challenging issues in multi-objective problems is finding Pareto optimal points. This paper describes an algorithm based on Benders Decomposition Algorithm (BDA) which tries to find Pareto solutions. For this aim, a multi-objective facility location allocation model is proposed. In this case, an integrated BDA and epsilon constraint method are proposed and it is shown that how P...
متن کامل