Decisionmaking by hierarchies of discordant agents
 Xiaotie Deng,
 Christos Papadimitriou
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Abstract
We study the following decisionmaking scenario: A linear program is solved by a set of agents arranged hierarchically in a tree, where each agent decides the level of certain variables, and has a distinct objective function, known to all agents. Authority is reflected in two ways: Agents higher in the tree set their variables first; and agents that are siblings in the tree resolve their game by focusing on the Nash equilibrium that is optimum for the agent above them. We give a necessary and sufficient condition for such a hierarchy to be efficient (i.e., to have perfect coordination, to ultimately optimize the objective of the firm). We study problems related to designing a hierarchy (assigning decision makers to positions in the tree) in order to achieve efficiency or otherwise optimize coordination.
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 Title
 Decisionmaking by hierarchies of discordant agents
 Book Title
 Algorithms and Computation
 Book Subtitle
 8th International Symposium, ISAAC '97 Singapore, December 17–19, 1997 Proceedings
 Pages
 pp 183192
 Copyright
 1997
 DOI
 10.1007/3540638903_21
 Print ISBN
 9783540638902
 Online ISBN
 9783540696629
 Series Title
 Lecture Notes in Computer Science
 Series Volume
 1350
 Series ISSN
 03029743
 Publisher
 Springer Berlin Heidelberg
 Copyright Holder
 SpringerVerlag
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 Editors
 Authors

 Xiaotie Deng ^{(1)}
 Christos Papadimitriou ^{(2)}
 Author Affiliations

 1. Department of Computer Science, City University of Hong Kong, Kowloon, Hong Kong
 2. Division of Computer Science, U. C. Berkeley, 94720, Berkeley, CA
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