A hierarchical approach to multi-person decision analysis in large scale systems

Several approaches for dealing with complex decision problems characterized by a multiplicity of decision makers are outlined. Earlier works of Arrow are treated briefly. A method for decentralizing a group decision problem by arranging the decision makers in a hierarchical structure is described in detail. Optimal team decisions due to Ho and Chu are outlined, and a method is described for developing the information structure by means of structural modeling. Finally a method is suggested for decomposing a large scale cooperative differential game into a number of smaller subsystems which can be coordinated by means of hierarchical systems theory.