Two-Level Financial Planning with Conflicting Goals: An Interactive Procedural Approach

Abstract

In this paper we consider financial planning as a process within and between two hierarchically distinct decision levels. The upper decision level consists of one internally consistent decision unit called the principal or coordinator. The lower decision level consists of a number of mutually separate decision units (subordinates), each of which is internally consistent. The principal decides on the distribution of resources over the lower level decision units. These decisions are a.o. based on the information provided by the lower level units.