Coordination strategy
A coordination strategy includes the aligned action , which leads to the harmony of individual preferences with the common goals of the group within the framework of the decision and action choice between different participants in a group .
Distinction
Decentralized coordination
As a result of the price functions , the selected actions in the context of price formation lead to benefit maximization . From a game theory point of view, this corresponds to maximizing the sum of the payouts. A market system is thus formed from the comparability of the alternatives on the basis of a price and the resulting choice of decision . Due to the constant interaction of the prices on the actions and this in turn on the prices, the prices are the coordination medium between the independently acting participants. The coordination between the participants is decentralized.
Central coordination
Without a price system, there is no coordinating decision-making mechanism (non-market system). The solution to the coordination processes must be made through collective decision-making. The coordination between the participants takes place centrally.
Influences and Effects
Several effects and processes such as coordination failure , critical mass , lock-in effect , follower effect , focal point can act on the coordination mechanisms mentioned.
literature
- Gérard Gäfgen : Theory of Economic Decision, Tübingen, 1968
- KP Hensel: Introduction to the theory of the central administration economy, Stuttgart, 1959
- Walter Adolf Jöhr : The problem of the economic order. In: Individual and Community, commemorative publication for the 50th anniversary of the St. Gallen Commercial College, St. Gallen, 1949
- E. Streissler : Price system, property rights and political election processes as social decision-making. Wirtschaftspolitische Blätter, 23. Jg./H5., 1976