Econometrica Vol. 35 No. 2 1967
Effective Control Through Coherent Decentralization with Preemptive Goals
Abstract
This paper shows that control through decentralization can be affected in general if additional information in the form of preemptive goals is delegated to individual units as well as prices. It is shown that the procedure is a robust one and results in small errors in profit. The technique of preemptive goals providing further control advantages in an economy where structural change is taking place over time as reflected by changing technological coefficient matrices of individual units is indicated.
- DOI
- 10.2307/1909114
- Volume
- 35
- Issue
- 2
- Pages
- 294
- Sources
- crossref openalex