Optimal Management of Evolving Hierarchies

We study the optimal management of evolving hierarchies revenue-generating agents. The initiator invests into expanding hierarchy by adding another agent, who will bring revenues to joint venture and invest herself further, so on. higher investments (which are private information), probability hierarchy. An allocation scheme specifies how distributed, as evolves. obtain schemes that socially initiator-optimal, respectively. Our results have potential applications for blockchain, cryptocurrencies, social mobilization, multilevel marketing. This paper was accepted Manel Baucells, behavioral economics decision analysis.