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Interactive Groups with Related Limited Efficiency

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  • J H P Paelinck

    (Nederlands Economisch Instituut, Burgemeester Oudlaan 50, Rotterdam-3016, The Netherlands)

Abstract

A model is set up in which two groups can potentially interact but this interaction is subject to some limitations. It is shown how allocation of resources proceeds under such conditions. The following results were obtained: asymptotically the dominated group is allowed some share of total resources; this is true even when the dominating group handles only an ‘egoistic’ objective function; fluctuations can be introduced by the allocative actions of the dominating group; threshold phenomena for reversing actions can be isolated; dominating actions can be used to combat cyclical behaviour of the system. One of the conclusions is that techniques like differential gaming might be adequate for exploring simultaneously satisfactory relations.

Suggested Citation

  • J H P Paelinck, 1979. "Interactive Groups with Related Limited Efficiency," Environment and Planning A, , vol. 11(10), pages 1179-1187, October.
    • Handle: RePEc:sae:envira:v:11:y:1979:i:10:p:1179-1187
    DOI: 10.1068/a111179
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    References listed on IDEAS

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    1. Cass, David & Shell, Karl (ed.), 1976. "The Hamiltonian Approach to Dynamic Economics," Elsevier Monographs, Elsevier, edition 1, number 9780121636500.
    2. Hadley, G. & Kemp, M. C., 1971. "Variational Methods in Economics," Elsevier Monographs, Elsevier, edition 1, number 9780720436013 edited by Bliss, C. J..
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