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The project management method envisages a hierarchy of plans. Define this hierarchy.
At the top level, there would be a Project Plan which covers the major aspects of the project although at a high level of aggregation. Every project stage must then be the subject of a more detailed Stage Plan. There various teams are involved in the project; every may have a very detailed Team Plan for its activities.
Where this becomes evident to a manager during a project which their part of the work is likely to go outside its agreed tolerances, they require completing an exception report to describe the position and an Exception Plan demonstrating how they propose to adjust the work to deal along with the circumstances. An Exception Plan can exist at certain or all of project, team or stage levels and, when approved, takes the place of the appropriate Project, Stage or Team Plan.
There are two agents, A and B. Both have preferences represented by a von Neumann-Morgenstern utility function u(c s j ) = ln (c s j ), where c s j is consumption of agent j in
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assignment .
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