A Study on Multi-Objective Evolutionary Algorithms and its Applications to Economics and Finance

Abstract

The use of evolutionary algorithms in diversified application domains has gained ever increasing popularity in the last few years producing a wide range of interesting applications ranging from engineering and computer science to ecology, sociology and medicine. From these diversified application areas of evolutionary algorithms, economics and finance constitutes a very promising field.The use of evolutionary algorithms for solving multiobjective optimization problem emerges as a potential field of research in recent years. This paper presents the use of multi-objective evolutionary algorithms (MOEAs) for solving problems in economics and finance. Different applications of MOEA are explained briefly and a specific simulation work has been done for one particular application i.e. investment portfolio optimization.