Near-optimal Pareto coordination of composite systems

The Pareto-optimal coordination problem in a large-scale composite system when cooperation among decision makers is not expected is studied. Because of the existence of a small singular perturbation parameter in the composite system, the construction of the full-order coordinating strategy is parametrically stiff and ill-conditioned. Instead, it might be possible to use the reduced-order coordination design to overcome the difficulties arising in the full-order coordination design. The authors propose a reduced-order procedure to construct the coordinating strategy for the coordinator and prove that the method produces the well-posed coordinating strategy