IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/21960.html

The Karenina Principle: A Decision Rule for Contradicting Requirements

Author

Listed:
  • Levermann, Anders

Abstract

We propose the Generalized Karenina Principle as a decision rationale for allocating a finite resource among essential requirements. Beyond competing for resources, requirements may be contradictory: gratifying one can directly impair another. Maximizing a multiplicative measure of success yields an adaptive rule that restores the optimal balance among gratification levels. In the two-requirement model, interior Karenina-optimal allocation remains locally stable as contradiction increases, whereas needresponsive allocation can generate destabilizing overcompensation. With interacting decision makers, Karenina-optimal reallocation also raises the threshold for collective instability. The principle bases adaptive allocation on restoring optimal gratification ratios rather than responding to individual deficits.

Suggested Citation

  • Levermann, Anders, 2026. "The Karenina Principle: A Decision Rule for Contradicting Requirements," CEPR Discussion Papers 21960, Centre for Economic Policy Research.
  • Handle: RePEc:cpr:ceprdp:21960
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP21960
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:21960. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CEPR (email available below). General contact details of provider: https://cepr.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.