Joint choice of program and economic mechanism under uncertainty (Q1087125)

Unlike the traditional approaches in control theory, which select the program and the controller separately, we focus on joint selection of the control program and the economic mechanism representing the controller. Our approach is based on the principle of guaranteed outcome, which is applied to evaluate the performance criterion and also to maintain the admissibility conditions under disturbances. The problem of joint choice of the control program and the controller is formalized by a pair of nested maxmin problems. Joint choice improves (in general, does not lower) the control performance and enlarges (in general, does not reduce) the admissible uncertainty sets. An example demonstrating strict improvement and enlargement is given.