On the communication complexity of expected-profit maximization
成果类型：
Article
署名作者：
Jordan, JS; Xu, DB
署名单位：
Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Hong Kong University of Science & Technology
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1999.2517
发表日期：
1999
页码：
185-202
关键词：
摘要：
Models of the behavior of the firm under uncertainty typically assume that the joint probability distribution over all random variables is common knowledge, and only the realized values of some variables are observed differentially. The main result of this paper shows that if the knowledge of the relevant probabilities is initially decentralized, then expected-profit maximizing decisions can require unbounded communication, as measured by the minimal message space dimension. The result is obtained in a simple model of a two-period, one product firm with two managers who must communicate in order to determine the level of inventory that maximizes expected profit. Journal of Economic Literature Classification Numbers: D71, D82, D92. (C) 1999 Academic Press.