Incentive control of multiple decision-making systems

Incentive control is an important method for hierarchical multiperson decision-making systems, and now is attracting more attentions from both the control and economic experts. The first part of this paper is a short review of the incentive control theory, which includs a description of incentive control problem and main concepts, the results on incentive controllability and inducible region, an equivalence principle for simplifying complex hierarchical decision problem, a solution to the dynamic incentive problem with uncertainty, etc. Then some aspects of applying incentive control to real world problem are discussed. Especially for systems containing enormous decision-makers, some preliminary works on building the macro-model from micromodel are introduced.