Purpose and Non-Purpose Resource Use Models in Two-Level Control Systems

Abstract

In the paper a two-level control system consisting of one element in top level and one element in bottom level is considered. Both levels have purpose use and non-purpose use interests. The model of resource allocation between purpose and non-purpose use interests for different classes of payoff functions is investigated. The model is built as a two-person game where the Stackelberg equilibrium is found. Analytical and numerical results are presented.