A New Approach to The Complexity of Decision Problems
January 2002
Research Paper
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A new measure of the complexity of optimal economic decisions is introduced. It is based on the level of detail of information (no information; ordinal; and cardinal information) that is required to establish optimality. A detailed example involving sequential group decision making is provided. It is shown that the type of links between successive agents determines the degree of complexity. The measure is also illustrated in the realm of matching problems.
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