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This book is a collection of extended versions of papers presented at the 23rd IFIP TC 7 Conference on System Modeling and Optimization, held in Cracow, Poland, in July 2007.§The 29 revised papers were carefully selected from numerous submissions. They cover a wide range of topics including optimzation theory; algorithms of nonlinear optimization; discrete optimization; stochastic optimization; distributed parameter systems: modeling and control; optimal control; stochastic control and financial mathematics; structural design; stability and sensitivity analysis in optimal control; and complex systems.