SOME PROBLEMS OF ALTERNATIVE STOCHASTIC PLANNING MECHANISMS
Ülo Ennuste · Eesti Teaduste Akadeemia toimetised. · 1989
The author examines basic assumptions and makes evaluations of some alternative stochastic planning mechanisms for optimal equilibrium plans of an abstract economy in the context of a simple two-period and two-sphere optimization model [1 -3].All the alternative mechanisms are the Benassy's competitive markets [4] with mixed coordination signals (prices and limits).Also, two problems of managerial risk aversion are discussed, and some rules to diminish aversion are introduced.To deal with all these problems complexly in a short paper like this, the author had to sacrifice some strictness, cut off many corners and use heuristic proofs.