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Our aim is to examine the problem of optimal asset allocation for investors exhibiting a behaviour in the face of uncertainty which is not consistent with the usual axioms of Expected Utility Theory. This thesis is divided into two main parts. In the first one, comprising Chapter II, we consider an arbitrage-free discrete-time financial model and an investor whose risk preferences are represented by a possibly nonconcave utility function (defined on the non-negative half-line only). Under straightforward conditions, we establish the existence of an optimal portfolio. As for Chapter III, it consists of the study of the optimal investment problem within a continuous-time and (essentially) complete market framework, where asset prices are modelled by semi-martingales. We deal with an investor who behaves in accordance with Kahneman and Tversky's Cumulative Prospect Theory, and we begin by analysing the well-posedness of the optimisation problem. In the case where the investor's utility function is not bounded above, we derive necessary conditions for well-posedness, which are related only to the behaviour of the distortion functions near the origin and to that of the utility function as wealth becomes arbitrarily large (both positive and negative). Next, we focus on an investor whose utility is bounded above. The problem's wellposedness is trivial, and a necessary condition for the existence of an optimal trading strategy is obtained. This condition requires that the investor's probability distortion function on losses does not tend to zero faster than a given rate, which is determined by the utility function. Provided that certain additional assumptions are satisfied, we show that this condition is indeed the borderline for attainability, in the sense that, for slower convergence of the distortion function, there does exist an optimal portfolio. Finally, we turn to the case of an investor with a piecewise power-like utility function and with power-like distortion functions. Easily verifiable necessary conditions for wellposedness are found to be sufficient as well, and the existence of an optimal strategy is demonstrated.

The overall aim of this thesis is to present a model for rational goal-setting and to illustrate how it can be applied in evaluations of public policies, in particular policies concerning sustainable development and environmental quality. The contents of the thesis are divided into two sections: a theoretical section (Papers I-IV) and an empirical section (Papers V-VII). Paper I identifies a set of rationality criteria for single goals and discusses them in relation to the typical function of goals. It is argued that goals are typically set to enhance goal achievement. A goal that successfully furthers its achievement is “achievement-inducing”. It holds for each of the identified criteria that, ceteris paribus, improved satisfaction of a criterion makes a goal better in the achievement-inducing sense.Paper II contains an analysis of the notion of goal system coherence. It is argued that the coherence of a goal system is determined by the relations that hold among the goals in the system, in particular the relations of operationalization, means and ends, support, and conflict. Paper III investigates the rationality of utopian goals. The paper analyzes four arguments that support the normative criterion of attainability: that utopian goals are (1) too imprecise and (2) too far-reaching to guide action effectively, (3) counterproductive, and (4) morally objectionable. A tentative defence of utopian goal-setting is built on counter-arguments that can be put forward to weaken each of the four objections. Paper IV investigates the nature of self-defeating goals. The paper identifies three types of situations in which self-defeating mechanisms obstruct goal achievement: (1) situations in which the goal itself carries the seeds of its own non-fulfilment (self-defeating goals), (2) situations in which the activity of goal-setting contributes to goal failure (self-defeating goal-setting), and (3) situations in which disclosure of the goal interferes with progress (self-defeating goal disclosure). Paper V provides a brief description of the Swedish system of environmental objectives and a preliminary inventory of the management difficulties that attach to this goal system.Paper VI contains an investigation into the rationality of five Swedish environmental objectives through an application of the rationality criteria identified in Papers I-II. The paper identifies and discusses some difficulties that are associated with management by objectives and the use of goals in environmental policy. Paper VII analyses the rationality of the Swedish environmental quality objective A good built environment. Among the conclusions drawn in the paper are that some of the sub-goals to the objective are formulated in terms that are unnecessarily vague from an action-guiding standpoint and that others are problematic from the viewpoint of evaluability. / QC 20100715

The city was from the past the place where people were meeting together, living and creating together. Therefore the role of individuals – city inhabitants should growth in today´s anonymus times. The role of pedestrian as individual enabling direct contact face to face, individual communicating with surroundings, is becoming essential part of „vivid“ city. In order the city to be functional, it is necessary to concentrate human beings and events, only then the city is becoming city of people, city of place, city of moment. The difinition of city sustainability and viability should be measured by city capability to provide quality life conditions to its inhabitants. It includes mainly high quality of natural and artificial environments, good life and working conditions, people rights for housing, working, social service and infrastructure. It should also protect cultural identity of the city and allow the possibility to participace in the city decision-making. Line traffic influences in a large scale accruing Urban Sprawl, forms large transport distances and increases the transport necessity mostly by private cars. It is important to make efficient planning with the politics of innovating traffic systems, which will be able to reduce the transport needs. For the city sustainability we can claim that the pedestrian transport has the contribution in restricting the suburbanization, in recuding the portion of motor vehicles and in restricting the risks of spatial segregation. It is necessary to create cities where people can get around and meet, where different forms and functions are mixed together in that way, that there will be no abandon city centres and no monofunctional zones. It is importnat to rely on principle that the streets are a social space. No only a traffic space, but also a social space. To design quality system of connected, function and safe pedestrian roads between residential buildings and local destinations, so the buildings can offer views to the streets which increases not only the safety, but especially connects course of events of these two worlds. To forms vivid, vibrant city, where the pedestrian movement is the interlinking element in between constantly developing town and preserving the life inside the town, is an immense challenge to all of us.