Synchronization Under Uncertainty

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