RT Journal Article
T1 Optimal management of evolving hierarchies
A1 Hougaard, Jens Leth
A1 Moreno-Ternero, Juan D.
A1 Osterdal, Lars P.
K1 Optimal allocation schemes
K1 Hierarchies
K1 Management
K1 Nash equilibrium
K1 Blockchain
AB We study the optimal management of evolving hierarchies of revenue-generating agents. The initiator invests into expanding the hierarchy by adding another agent, who will bring revenues to the joint venture and who will invest herself into expanding the hierarchy further, and so on. The higher the investments (which are private information), the higher the probability of expanding the hierarchy. An allocation scheme specifies how revenues are distributed, as the hierarchy evolves. We obtain schemes that are socially optimal and initiator-optimal, respectively. Our results have potential applications for blockchain, cryptocurrencies, social mobilization, and multilevel marketing.
PB INFORMS
YR 2021
FD 2021-11-23
LK https://hdl.handle.net/10433/22188
UL https://hdl.handle.net/10433/22188
LA en
NO Jens Leth Hougaard, Juan D. Moreno-Ternero, Lars Peter Østerdal (2021) Optimal Management of Evolving Hierarchies. Management Science 68(8):6024-6038. https://doi.org/10.1287/mnsc.2021.4185
NO FECYT -- JUSTICIA ECONOMICA Y BIENESTAR SOCIAL EN UN CONTEXTO DE RECURSO...FECYT -- FUNDAMENTOS NORMATIVOS PARA INDICADORES SOCIO-ECONOMICOS
NO Universidad Pablo de Olavide
DS RIO
RD May 9, 2026