Preference Optimality and Applications of Pareto-Optimality

To a layman one might explain the meaning of “optimization” as follows: Consider any process whatever which may be described mathematically, and whose outcome may be influenced by a set of possible decisions. Associate with the process a numerical criterion whose value depends on the decision and corresponding outcome of the process. “Optimization” then means that the decision is to be made so as to yield a maximum or a minimum numerical value of the criterion; that is, the criterion serves as a means of comparing different decisions and their outcomes.

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