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Organizational Form Outside the Principal-Agent Paradigm

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  • Borland, Jeff
  • Eichberger, Jurgen

Abstract

This paper provides a review of theories of hierarchies in organizations where the rationale for hierarchical organization derives from agents' limited capacities for acquiring and communicating information. In these circumstances, hierarchical organization of agents may serve to reduce the amount of time necessary for completion of production tasks, or to improve the quality of information for decision-making on how to undertake production tasks. An informal discussion of theories of hierarchy is provided as well as a formal presentation of key models and results. Limitations of existing approaches are considered. Copyright 1998 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Borland, Jeff & Eichberger, Jurgen, 1998. "Organizational Form Outside the Principal-Agent Paradigm," Bulletin of Economic Research, Wiley Blackwell, vol. 50(3), pages 201-227, July.
    • Handle: RePEc:bla:buecrs:v:50:y:1998:i:3:p:201-27
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    Cited by:

    1. Sid Durbin, 2004. "Review of Workplace Skills, Technology Adoption and Firm Productivity: A Review," Treasury Working Paper Series 04/16, New Zealand Treasury.

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