Abstract
An interaction between the superior and the subordinate is interpreted as a two-person hierarchic game where the superior structures the game using his authority in the hierarchy. Within this framework it is shown that the superior achieves socially optimal levels of output. However, the introduction of uncertainty into the hierarchic framework generally reduces the maximum guaranteed payoff of the superior as compared to the case of hierarchical games with complete information.
| Original language | English |
|---|---|
| Pages (from-to) | 309-317 |
| Number of pages | 9 |
| Journal | International Review of Economics and Finance |
| Volume | 3 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1994 |
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