How to Optimally Allocate “Bribe” Money
Blog: Decision Management Community
Tallys Yunes published an Excel-based optimization model that calculates the likelihood that certain agents will perform a given action that benefits you. Link
Below are a few examples:
Example 1: You are the seller of a product. Agents are customers. The action is purchasing your product. The financial incentive is a discount. You have a budget for the overall discount you can give and you want to optimally allocate different discount amounts to different customers to bring as many of them as possible to the brink of buying your product (say, a 50% chance).
Example 2: You are a politician. Agents are voters. The action is voting for you. The financial incentive is a bribe. This happens in Brazil and likely in other countries as well. (Disclaimer: I’m not advocating that this is an ethical or moral thing to do. Like any superpower, however, mathematics can be used by the dark side as well.)
Example 3: You are a university. Agents are admitted students. The action is picking you to attend. The financial incentive is a scholarship.
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