Optimal management of evolving hierarchies

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Optimal management of evolving hierarchies. / Hougaard, Jens Leth; Moreno-Ternero, Juan D.; Østerdal, Lars Peter .

In: Management Science, 23.11.2021.

Research output: Contribution to journalJournal articleResearchpeer-review

Harvard

Hougaard, JL, Moreno-Ternero, JD & Østerdal, LP 2021, 'Optimal management of evolving hierarchies', Management Science. https://doi.org/10.1287/mnsc.2021.4185

APA

Hougaard, J. L., Moreno-Ternero, J. D., & Østerdal, L. P. (2021). Optimal management of evolving hierarchies. Management Science. https://doi.org/10.1287/mnsc.2021.4185

Vancouver

Hougaard JL, Moreno-Ternero JD, Østerdal LP. Optimal management of evolving hierarchies. Management Science. 2021 Nov 23. https://doi.org/10.1287/mnsc.2021.4185

Author

Hougaard, Jens Leth ; Moreno-Ternero, Juan D. ; Østerdal, Lars Peter . / Optimal management of evolving hierarchies. In: Management Science. 2021.

Bibtex

@article{0a40ae56d3104ab5b7081f68a6b451c4,
title = "Optimal management of evolving hierarchies",
abstract = "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.",
author = "Hougaard, {Jens Leth} and Moreno-Ternero, {Juan D.} and {\O}sterdal, {Lars Peter}",
year = "2021",
month = nov,
day = "23",
doi = "10.1287/mnsc.2021.4185",
language = "English",
journal = "Management Science",
issn = "0025-1909",
publisher = "Institute for Operations Research and the Management Sciences (I N F O R M S)",

}

RIS

TY - JOUR

T1 - Optimal management of evolving hierarchies

AU - Hougaard, Jens Leth

AU - Moreno-Ternero, Juan D.

AU - Østerdal, Lars Peter

PY - 2021/11/23

Y1 - 2021/11/23

N2 - 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.

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.

U2 - 10.1287/mnsc.2021.4185

DO - 10.1287/mnsc.2021.4185

M3 - Journal article

JO - Management Science

JF - Management Science

SN - 0025-1909

ER -

ID: 285797169