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When does coordination require centralization?

delete2008-03-01
delete303
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OA
AI
R
Ricardo Alonso *
W
Wouter Dessein
M
Matouschek, Niko
DOI：10.1257/aer.98.1.145delete
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摘要

摘要

En 中文
This paper compares centralized and decentralized coordination when managers are privately informed and communicate strategically. We consider a multi-divisional organization in which decisions must be adapted to local conditions but also coordinated with each other. Information about local conditions is dispersed and held by self-interested division managers who communicate via cheap talk. The only available formal mechanism is the allocation of decision rights. We show that a higher need for coordination improves horizontal communication but worsens vertical communication. As a result, decentralization can dominate centralization even when coordination is extremely important relative to adaptation.
Keyword:
CHEAP TALK
INFORMATION
DESIGN
FIRM
COMMUNICATION
ORGANIZATIONS
DECENTRALIZATION
HIERARCHIES
INTEGRATION
ALLOCATION
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American Economic Review 封面图
American Economic Review
IF:
11.6
论文数:
5.0K
被引数:
7.5W

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university of southern california
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被引数: 51
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university of chicago
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被引数: 80
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Northwestern University
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