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Coordination under Uncertainty

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Author Info
Michael Ostrovsky
Michael Schwarz

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Abstract

A decision maker needs to schedule several activities that take uncertain time to complete and are only valuable together. Some activities are bound to be finished earlier than others, thus incurring waiting costs. We show how to schedule activities optimally, how to give independent agents performing them incentives that implement the efficient schedule, how to form teams, and how to optimally reduce uncertainty when it is possible to do so at a cost. The paper offers insights into important economic decisions such as planning large projects and coordinating product development activities.

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File URL: http://www.economics.harvard.edu/pub/hier/2002/HIER1969.pdf
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Publisher Info
Paper provided by Harvard - Institute of Economic Research in its series Harvard Institute of Economic Research Working Papers with number 1969.

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Date of creation: 2002
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Handle: RePEc:fth:harver:1969

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This page was last updated on 2009-12-2.


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