Accession Number : AD0681033

Title :   THE FORMATION OF GROUPS FOR COOPERATIVE DECISION MAKING UNDER UNCERTAINTY.

Descriptive Note : Technical rept.,

Corporate Author : STANFORD UNIV CALIF DEPT OF STATISTICS

Personal Author(s) : Rosing,Jakob

Report Date : 10 SEP 1968

Pagination or Media Count : 108

Abstract : In many situations involving interaction among parties, the individual welfare of each party can be improved by cooperation. This requires a cooperative decision, which specifies the course of action to be followed by each party, and a rule for sharing the total payoff resulting from that decision. In general, the total payoff will depend on the value of a random variable that is unknown at the time of the decision making. This study determines the conditions under which the parties are willing to delegate cooperative decision making to a group. In arriving at its optimal decision, this group does not take into account the division of the total payoff among the parties. Furthermore, the parties are willing to form this group independent of the set of alternative payoff functions. The results are based on the assumption of complete information; that is, each party knows his own and his opponents' utility functions, subjective probability distributions, available strategies, and payoff functions. (Author)

Descriptors :   (*GAME THEORY, DECISION MAKING), (*DECISION MAKING, UNCERTAINTY), GROUP DYNAMICS, ECONOMICS, PROBABILITY, OPTIMIZATION, THEOREMS, UNITED STATES, CANADA, RIVERS, THESES

Subject Categories : Psychology
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE