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Author Cohen, S. ♦ Groves, T.
Source IEEE Xplore Digital Library
Content type Text
Publisher Institute of Electrical and Electronics Engineers, Inc. (IEEE)
File Format PDF
Copyright Year ©1976
Language English
Subject Domain (in DDC) Technology ♦ Engineering & allied operations ♦ Other branches of engineering
Subject Keyword Iterative algorithms ♦ Technology management ♦ Educational institutions
Abstract The Dantzig-Wolfe Decomposition Algorithm (DWDA) is viewed as a resource allocation procedure for a multidivisional firm. An evaluation procedure is proposed that provides incentives in equilibrium for the divisional managers to follow the rules of the DWDA even though they are able to "cheat" in a manner that could not be detected. The evaluation procedure is based on a measure that is not simply an index of the division's "profit" contribution, but one incorporating the division's true opportunity cost to the firm. The evaluation procedure for the DWDA is a specific example of a general procedure for the incentive compatible control of large divisionalized organizations using iterative decomposition algorithms.
Description Author affiliation: Northwestern University, Evanston, Illinois (Groves, T.) || Georgia Institute of Technology, Atlanta, Georgia (Cohen, S.)
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research ♦ Reading
Education Level UG and PG
Learning Resource Type Article
Publisher Date 1976-12-01
Publisher Place USA
Rights Holder Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Size (in Bytes) 305.93 kB
Page Count 4
Starting Page 287
Ending Page 290


Source: IEEE Xplore Digital Library