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Multicriteria Network Equilibrium Modeling with Variable Weights for Decision-Making in the Information Age with Applications to Telecommuting and Teleshopping

UCD-ITS-RP-02-39

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Suggested Citation:
Nagurney, Anna, June Q. Dong, Patricia L. Mokhtarian (2002) Multicriteria Network Equilibrium Modeling with Variable Weights for Decision-Making in the Information Age with Applications to Telecommuting and Teleshopping. Journal of Economic Dynamics and Control 26 (9-10), 1629 - 1650

In this paper, we develop a multicriteria network equilibrium framework for modeling decision-making in the Information Age. We consider distinct classes of decision-makers, each of whom has a set of criteria associated with the decision along with weights which are variable and criterion-dependent. The decisions take place on a network in which links can be either physical, as in the case of transportation, or virtual, as in the case of telecommunications. We derive the equilibrium conditions and establish qualitative properties of the equilibrium pattern. The model enables the prediction of the number of decision-makers that will select particular choices, along with the incurred generalized costs. We then apply the modeling schema to telecommuting versus commuting and to teleshopping versus shopping decision-making.