A redefinition of the fundamental concept of efficiency to eliminate certain anomalous situations. The resulting new definition, called "proper" efficiency, is related to the notion of proper efficiency introduced by Kuhn and Tucker in 1950. However, the present definition avoids some of the drawbacks inherent in the earlier one. A comprehensive theory of vector maximization is constructed using the new definition, with and without various constraint qualification, convexity, and differentiability assumptions. The theory includes as a special case the standard theory of nonlinear programming. 30 pp. Ref
This report is part of the RAND Corporation Research memorandum series. The Research Memorandum was a product of the RAND Corporation from 1948 to 1973 that represented working papers meant to report current results of RAND research to appropriate audiences.
Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit www.rand.org/about/research-integrity.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.