Axiomatizations of the Euclidean Compromise

The utopia point of a multicriteria optimization problem is the vector that specifies for each criterion the most favorable feasible value. The Euclidean compromise solution in multicriteria optimization is a solution concept that assigns to a feasible set the alternative with minimal Euclidean distance to the utopia point. This paper provides several axiomatic characterizations of the Euclidean compromise solution that are based on consistency properties. ∗We thank Bernhard von Stengel, the Associate Editor, and the two referees for their thoughtful comments and suggestions. †Department of Economics, Stockholm School of Economics, Stockholm, SE-11383 Sweden. E-mail: [email protected]. ‡Department of Economics, University of Oregon, Eugene, OR 97403-1285, USA. E-mail: [email protected]. §Department of Economics, Rutgers University, New Brunswick, NJ, 08901-1248, USA. Email: [email protected].