Choosing the effective solutions to multi-criterion problems of interaction of the housing and utilities sector's economic entities under the absence of uncertainty based on a utility function
Importance The article explores the operations of economic entities of the housing and utilities sector, and searches for effective solutions to multi-criterion problems of modeling their interaction in absence of uncertainty based on the utility theory tools. At the stage of the housing and utilities sector modernization, the substantiation of approaches to solving this problem seems to be a very urgent task. Objectives The main objective of the study is to adapt the existing methodological approach involving the utility function to searching for practical solutions to multi-criteria problems of effective interaction of economic entities operating in the housing and utilities sector given the diverse preferences of their business activities. Methods As a methodological approach to the problem, we used the specifics of the utility function to formalize the preferences of economic entities of the housing and utilities sector during their interaction. We considered the features of their preferences formalization for two- and multi-criteria problem setting. Furthermore, we showed the possibility of using the tools for constructing indifference curves to obtain the numerical values of the utility function. Results The main results of the study include the rationale for the use of utility functions for the formalization of preferences of the housing and utilities sector' entities in the process of their interaction; the formation of preferences of economic entities of the housing and utilities sector in solving two-and multi-criteria tasks; the rationale for the use of the additive utility function taking into account the preferences of economic entities; the feasibility of using the fair compromise principle in the interaction of economic entities of the housing and utilities sector. Conclusions and Relevance The analyzed approaches are designed to be used in the absence of uncertainty and may be applied in modeling the interaction of economic actors of the housing and utilities sector. Their practical implementation will contribute to effective solutions to multi-criteria problems in the absence of uncertainty, taking into account the multi-directional impact of the complex totality of factor criteria.
Venttsel' E.S. Issledovanie operatsii: zadachi, printsipy, metodologiya [Exploring the operations: objectives, principles and methodology]. Moscow, Nauka Publ., 1988, 206 p.
Vechkanov G.S., Vechkanova G.R. Mikroekonomika [Microeconomics]. St. Petersburg, Piter Publ., 2004, 288 p.
Evseeva S.A. Problema nesoglasovannosti interesov sub"ektov khozyaistvovaniya v sisteme menedzhmenta organizatsii ZhKKh [The problem of non-coordinated interests of business entities in the management system of housing and utilities sector operations]. Problemy sovremennoi ekonomiki = Problems of Modern Economics, 2012, no. 4, pp. 299–303.
Keeney R.L., Rife H. Prinyatie reshenii pri mnogikh kriteriyakh: predpochteniya i zameshcheniya [Decisions with Multiple Criteria: Preferences and Substitution]. Moscow, Radio i svyaz' Publ., 1981, 560 p.
Larin S.N. Puti innovatsionnogo razvitiya sfery zhilishchno-kommunal'nogo khozyaistva regiona [Ways of innovation development of the housing and utilities sphere of a region]. Regional'naya ekonomika: teoriya i praktika = Regional Economics: Theory and Practice, 2012, no. 6, pp. 24–35.
Larin S.N. Modernizatsiya sfery ZhKKh na osnove vnedreniya innovatsionnykh podkhodov v upravlenie i povyshenie effektivnosti vosproizvodstva zhilishchnogo fonda [Modernizing the housing and utilities sphere through the introduction of innovative approaches to management and improvement of housing stock functioning]. Natsional'nye interesy: prioritety i bezopasnost' = National Interests: Priorities and Security, 2013, no. 8, pp. 36–47.
Larichev O.N., Nikiforov A.D. Analiticheskii obzor protsedur resheniya mnogokriterial'nykh zadach matematicheskogo programmirovaniya [An analytical review of procedures for solving multi-criteria tasks of mathematical programming]. Ekonomika i matematicheskie metody = Economics and Mathematical Methods, 1986, vol. 22, iss. 3, pp. 508–523.
Larichev O.N. Teoriya i metody prinyatiya reshenii [The theory and methods of decision-making]. Moscow, Logos Publ., 2002, 392 p.
Lipsits I.V. Ekonomika [Economics]. Moscow, Omega-L Publ., 2006, 656 p.
Makarenya T.A. Organizatsionnyi i institutsional'nyi bazis formirovaniya mekhanizma regulirovaniya sovremennoi sfery zhilishchno-kommunal'nykh uslug [Organizational and institutional basis of building the regulation mechanism for the modern housing and utilities sector]. Available at: Link. (In Russ.)
McConnell C.R., Brue S.L. Ekonomika: printsipy, problemy i politika [Economics: principles, problems, and policies]. Moscow, INFRA-M Publ., 2009, 916 p.
Mikroekonomika. Teoriya i rossiiskaya praktika [Microeconomics. Theory and Russian practice]. Moscow, KnoRus, GNOM i D Publ., 2000, 544 p.
Mankiw N.G. Printsipy mikroekonomiki [Principles of Microeconomics]. St. Petersburg, Piter Publ., 2007, 592 p.
Nogin V.D. Prinyatie reshenii v mnogokriterial'noi srede: kolichestvennyi podkhod [Multi-criteria decision-making environment: a quantitative approach]. Moscow, Fizmatlit Publ., 2002, 144 p.
Pisaruk N.N. Issledovanie operatsii [Researching an operation]. Minsk, BSU Publ., 2013, 272 p.
Samuelson P.E., Nordhaus W.D. Ekonomika [Economics]. Moscow, Vil'yams Publ., 2007, 1360 p.
Sloman J. Ekonomiks [Economics]. St. Petersburg, Piter Publ., 2007, 608 p.
Sobol' I.M. Vybor optimal'nykh parametrov v zadachakh so mnogimi kriteriyami [Choosing the optimal parameters in multi-criteria tasks]. Moscow, Drofa Publ., 2006, 175 p.
Fedorchenko S.G., Dolgov Yu.A., Kirsanova A.V., Mencher E.M., Pomyan S.V., Nizhegorodova M.V., Andrianova E.I., Koloskova N.V., Kolegov A.V., Bashkatov A.M. Obobshchennaya funktsiya poleznosti i ee prilozheniya [The generalized utility function and its applications]. Tiraspol, Trans-Dniester State University Publ., 2011, 196 p.
Chernorutskii I.G. Metody optimizatsii v teorii upravleniya [Methods of optimization in the management theory]. St. Petersburg, Piter Publ., 2004, 256 p.
Steuer R. Mnogokriterial'naya optimizatsiya: teoriya, vychisleniya i prilozheniya [Multi-criteria optimization: theory, computation and applications]. Moscow, Radio i svyaz' Publ., 1992, 504 p.
Ekonomicheskaya teoriya [Economic theory]. Moscow, Ekzamen Publ., 2004, 592 p.
Steuer R.E., Na P. Multiple criteria decision making combined with finance: A categorized bibliographic study. European Journal of Operational Research, 2003, no. 150, pp. 496–515.
