Econometrica: May 1974, Volume 42, Issue 3
Recursively Decentralized Decision Making
Charles Blackorby, Daniel Primont, David Nissen, R. Robert RussellDecentralized decision making is consistent if it is executed without cost (i.e., without a loss of output or utility). Consistency requires that the objective function be appropriately structured. In this paper, a hierarchical decision making structure is rationalized by an objective function which combines some of the properties of homothetic separability and asymmetric separability.
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