University of Georgia

Mathematics Department Colloquium

Markus Hirschberger

University of Eichstaett-Ingolstadt

February 12, 2004

Efficiency Concepts for Stochastic Linear Multiobjective Programs


Abstract: The notions of "efficiency" and "proper efficiency" for deterministic multiobjective programs are introduced. These are extended to stochastic programs by introducing the "Expected value-variance efficiency" and "efficiency in probability" concepts, which are illustrated on the portfolio selection problem. Assuming that all objective vectors are normally distributed, we discuss the three most important questions for the stochastic linear multiobjective program: We show the relations between the various efficiency concepts, give a proof scheme for the arcwise connectedness of the efficient sets, and present a computation procedure of polynomial complexity.