ON INFORMATION ECONOMICS AND AGGREGATE PLANNING DECISIONS.
Abstract
Marschak and Radner have shown that a useful framework for evaluating information within organizations is the construct of team decision theory. Radner develops team decision models for the case where organizational objective criteria are represented by a quadratic function. It is clear that this study bears directly on the analysis of optimal decision rules for aggregate planning, as reported by Holt, Theil, Van de Panne, and others. The purpose of this note is to relate these analyses explicitly and to provide a numerical example based on aggregate production planning decisions. Some practical considerations for the design of economic decision and information systems are discussed more fully in a future work.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1966
- Accession Number
- AD0631937
Entities
People
- Charles H. Kriebel
Organizations
- Carnegie Institute of Technology