Speed and quality of collective decision making: Incentives for information provision
AbstractAbstract We study a one-shot information aggregation problem in which agents have to provide effort in order to understand the information they are supposed to process. Agents have a common interest in reaching a good decision but suffer from an individual cost of providing effort. Showing that any problem which is incentive compatible for a single information processor is incentive compatible for a decentralized organization, but not vice versa, we derive a new rationale for decentralized information processing. For a class of problems, the fastest organization - the reduced tree proposed by Radner (1993) - yields also the best incentives for information processing.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 76 (2010)
Issue (Month): 3 (December)
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Information processing Hierarchies Incentives for information provision;
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