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Financial Analytics: Science and Experience
 

An economic and mathematical analysis of issues of coordinating the economic interests at various levels of hierarchical management system

Vol. 8, Iss. 27, JULY 2015

PDF  Article PDF Version

Received: 5 March 2015

Received in revised form: 1 June 2015

Accepted: 4 June 2015

Available online: 7 August 2015

Subject Heading: MATHEMATICAL ANALYSIS AND MODELING IN ECONOMICS

JEL Classification: 

Pages: 28-41

Egorova N.E. Central Economics and Mathematics Institute, Russian Academy of Sciences, Moscow, Russian Federation
nyegorova@mail.ru

Ivanov K.A. OOO ABSOLYUT-SIRIUS, Moscow, Russian Federation
o.selyuchenko@mail.ru

Importance The research focuses on the issues of coordinating interests at various levels of the hierarchical management system. The research examines a certain type of tasks for aligning economic interests with ideal points within and out of the attainability domain.
     Objectives The research pursues a comparative economic and mathematical analysis, and identifying strengths of various algorithms for addressing the issues, including formal and heuristic procedure algorithms.
     Methods The methods of the research involve the concept of a Pareto optimality that defines a coordinated decision, as well as Larichev's method for analyzing the correctness of heuristic procedures applied to multi-criteria tasks.
     Results As a result of the research, we deliver modified and iterative procedures for coordinating economic interests in two-tier systems, using the correct heuristic procedures.
     Conclusions and Relevance We prove that the methods for coordinating economic interests, including heuristic procedures, allow to consider informal aspects, which are significant for the real practice of coordinating economic interests, rather than factors, which are conventionally deemed present in models with formal criteria. We develop effective formal and heuristic algorithms for finding reasonable (in line with a Pareto optimality) economic decisions in two-tier management structures, a wide spectrum of multi-criteria optimization tasks with some social and economic criteria that are hard to formalize.

Keywords: optimal task, decision maker, ideal point, Pareto set, hierarchical management level

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