Flexible Regulation of Distributed Coalitions

This paper considers a coalition C of enterprises {E1,..., En}, which is to be governed by a coalition policy PC , and where each memberenterprise Ei has its own internal policy Pi that regulates its participation in the coalition. The main question addressed in this paper is how can these three policies be brought to bear, on a single transaction— given that the two internal policies Pi and Pj may be formulated independently of each other, and may be considered confidential by the respective enterprises. We provide an answer to this question via a concept of policy-hierarchy, introduced into a regulatory mechanism called Law-Governed Interaction (LGI).