By Dr. Peter Bogetoft (auth.)
Planning in a common experience is worried with the layout of verbal exchange and determination making mechanisms in businesses the place info and selection are decentralized. Non-cooperative making plans conception because it is built during this e-book treats the inducement features hereof. It stresses how strategic habit and opportunism might abate making plans, and the way this is coped with through the association of conversation and selection making, the layout of knowledge and regulate platforms, and the advance of incentive schemes. specifically, the booklet incorporates a thorough research of incentive provision in details production.
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Extra resources for Non-Cooperative Planning Theory
6. Conclusions, Mathematical Appendix. 1. Introduction In this Part, chapters 2-3, we emphasize the decentralization of information in planning, and we investigate how the organization of communication affects the possibility to implement social choice correspondences. We first introduce (static) Bayesian games to model situations with decentralized information and no communication. 3 we introduce communication into a Bayesian environment. This allows a simple yet reasonably general formalization of the basic incentive conflicts associated with private information and private actions.
As regards the timing, we assume that the agents first report rER to the planner. The planner then makes the social choice aEA and submits recommendations rER to the agents. Lastly, the agents choose their private actions dED. The resulting utilities to the agents are ~(a,d,t), iEI, when the state is tET. We have allowed here that utilities depend on the social choice, but not on messages nor recommendations. Hence, somewhat crudely, we presume that communication is costless within M and R and prohibitively costly outside.
Social choice theory considers the case where multiple agents must decide on a common course of action, and it is concerned with the properties of systematical procedures for choosing in such cases. Game theory is concerned with the behavior of individuals in environments where multiple agents with conflicting preferences have individual possibilities to act, and where the fmal outcome depends on the joint actions of all agents. Implementation theory is concerned with the aggregate properties of those relations between context and outcomes that can be implemented when pertinent information is decentralized.
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