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Objectives of an enterprise. Bi-criteria analysis and negotiation problems

Gadomski Jan, Kruś Lech

Control and Cybernetics

2021

Vol. 50, No. 1

169--193

A decision-making process is considered for a firm, in which two coexisting groups of interests pursue different goals. An original model based on a non-neoclassical production function is proposed. The function satisfies the conditions formulated by R. Frisch, which makes it possible to investigate firms operating in the environment far from the perfect competition and pursuing goals other than profit maximization. A two-criteria optimization problem is formulated with the two criteria representing the goals of the groups: maximization of profit and maximization of income generated by the firm with respect to capital and labor. The problem is considered in two variants of the product market, namely the perfect and the imperfect competition. Solutions of the problem are analyzed including the derived Pareto sets. The importance of knowledge about the Pareto set in negotiations between the groups of interests in the firm is illustrated and discussed.

Economic modelling of the management of dredged marine sediments

Harrington J. R., Murphy J., Coleman M., Jordan D., Debuigne T., Szacsuri G.

Geology, Geophysics and Environment

2016

Vol. 42, no. 3

311--324

This paper presents and applies an economic model developed for the management of dredged marine sediments. The model predicts direct project costs and direct, indirect and induced economic impacts. The model is applied to analyse the economic aspect of the specific potential beneficial use of dredged sediment for land reclamation in an Irish context. The model results show the potential economic benefits to land reclamation of using dredged sediment including its value as a potential substitute for quarry based material and as an alternative to traditional offshore dredged sediment disposal, where appropriate. Analysis of other sediment management approaches including wetland creation, is also presented with the results for wetland creation indicating its potential, where appropriate, as a valuable alternative to offshore disposal. Indicative economic benefits are predicted by the model for the different dredge sediment management approaches analysed.