Accession Number:

ADA031700

Title:

Performance Incentives and Planning under Uncertainty.

Descriptive Note:

Final rept.,

Corporate Author:

AIR FORCE ACADEMY COLO

Report Date:

1976-09-01

Pagination or Media Count:

33.0

Abstract:

The report discusses the use of the performance incentive function PIF by planning organizations when there is subjective or objective uncertainty. It is proved that a PIF can be constructed which achieves both allocational and distributional optimality, when there is subjective uncertainty about the conditions of production and both the center and the producer are risk averse. When there is objective uncertainty, however, it is shown that it is not, in general, possible for the center to achieve these two objectives simultaneously.

Subject Categories:

  • Economics and Cost Analysis
  • Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE