Mathematical concepts II

Pareto Optimality: less strict than Domination
Not dominated products are "somewhat" optimum!

Def: Pareto-Optimality
A product P in product-space is called pareto-optimum, if there is no other product Q with Q >> P.

Def: Pareto-Optimality in factor space
A factor setting ${\bf X}$ is pareto-optimum in factor space, if $P := E({\bf X})$ is pareto-optimum in product-space.

Problem here: probably many solutions!

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If an object is not pareto-optimum, it should not be considered a solution of a MCO problem!

Dipl.-Stat. Detlef Steuer
1999-10-04