The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: May, 1974, Volume 42, Issue 3
https://doi.org/0012-9682(197405)42:3<487:RDDM>2.0.CO;2-0
p. 487-496
Charles Blackorby, Daniel Primont, David Nissen, R. Robert Russell
Decentralized decision making is consistent if it is executed without cost (i.e., without a loss of output or utility). Consistency requires that the objective function be appropriately structured. In this paper, a hierarchical decision making structure is rationalized by an objective function which combines some of the properties of homothetic separability and asymmetric separability.
