Compromise Hypersphere for Multi-Criteria Dynamic Programming

The paper considers multi-criteria dynamic decision process. We focus on the efficient realizations of the dynamic process which are characterized by non-dominated values of the multi-period criteria function. The aim of the paper is to use the compromise hypersphere method to rank the efficient realizations. The presented method allows us to take into account the risk aversion of the decision maker. Moreover, we apply the presented theory in the market model taken from microeconomic theory.