Synchronization Under Uncertainty

Stanford GSB Research Paper No. 1923

33 Pages Posted: 7 Feb 2006

See all articles by Michael Ostrovsky

Michael Ostrovsky

Stanford Graduate School of Business

Michael Schwarz

Yahoo! - Yahoo! Research Labs; National Bureau of Economic Research (NBER)

Date Written: June 2005

Abstract

A decision maker needs to schedule several activities that take uncertain time to complete and are only valuable together. Some activities are bound to be finished earlier than others, thus incurring waiting costs. We show how to schedule activities optimally, how to give independent agents performing them incentives that implement the efficient schedule, and how to form teams in the presence of uncertainty. The paper offers insights into important economic decisions such as planning large projects and coordinating product development activities.

Keywords: economic theory, economics of organizations, microeconomics, operations management, organizational design

JEL Classification: D78, L23, O22

Suggested Citation

Ostrovsky, Michael and Schwarz, Michael, Synchronization Under Uncertainty (June 2005). Stanford GSB Research Paper No. 1923, Available at SSRN: https://ssrn.com/abstract=881096 or http://dx.doi.org/10.2139/ssrn.881096

Michael Ostrovsky (Contact Author)

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305
United States
650-724-7280 (Phone)

HOME PAGE: http://faculty-gsb.stanford.edu/ostrovsky/

Michael Schwarz

Yahoo! - Yahoo! Research Labs ( email )

Sunnyvale, CA 94089

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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