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Decentralization and the Search for Policy Solutions

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  • Kollman, Ken
  • Miller, John H
  • Page, Scott E
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    Abstract

    We use mathematical and computational models to analyze the ability of federated organizations to solve difficult problems. Federated organizations may have some inherent advantages for solving difficult problems since they can empower multiple subunits to search for policy solutions in parallel and exploit and combine the mutual information discovered by the subunits to reveal even better solutions. We find that the benefits of these methods of experimentation first increase and then decrease as the problem of finding good policies increases in difficulty. Copyright 2000 by Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Journal of Law, Economics and Organization.

    Volume (Year): 16 (2000)
    Issue (Month): 1 (April)
    Pages: 102-28

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    Handle: RePEc:oup:jleorg:v:16:y:2000:i:1:p:102-28

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    Cited by:
    1. Page, Scott E. & Tassier, Troy, 2007. "Why chains beget chains: An ecological model of firm entry and exit and the evolution of market similarity," Journal of Economic Dynamics and Control, Elsevier, vol. 31(10), pages 3427-3458, October.
    2. Christos Kotsogiannis & Robert Schwager, 2005. "On the Incentives to Experiment in Federations," CESifo Working Paper Series 1585, CESifo Group Munich.
    3. Jan Schnellenbach, 2007. "Rational ignorance is not bliss: When do lazy voters learn from decentralised policy experiments?," Working Papers 0441, University of Heidelberg, Department of Economics, revised May 2007.
    4. Jean-Robert Tyran & Rupert Sausgruber, 2003. "The Diffusion of Policy Innovations. An Experimental Investigation," University of St. Gallen Department of Economics working paper series 2003 2003-14, Department of Economics, University of St. Gallen.
    5. Rincke, Johannes, 2005. "Neighborhood Influence and Political Change: Evidence from US School Districts," ZEW Discussion Papers 05-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Steven Callander & Bård Harstad, 2013. "Experimentation in Federal Systems," NBER Working Papers 19601, National Bureau of Economic Research, Inc.
    7. Myong-Hun Chang & Joseph E Harrington Jr, 2004. "Agent-Based Models of Organizations," Economics Working Paper Archive 515, The Johns Hopkins University,Department of Economics.
    8. Andreas Wagener, 2009. "Tax Competition, Relative Performance and Policy Imitation," CESifo Working Paper Series 2723, CESifo Group Munich.
    9. Christos Kotsogiannis & Robert Schwager, 2005. "Policy Innovation In Federal Systems," Urban/Regional 0504001, EconWPA.
    10. Wolfgang Kerber, 2006. "An Optional European Contract Law Code: Advantages and Disadvantages," Marburg Working Papers on Economics 200607, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Henning Klodt & Oliver Lorz, 2008. "The coordinate plane of global governance," The Review of International Organizations, Springer, vol. 3(1), pages 29-40, March.
    12. Hans-Günter Krüsselberg, 2005. "Milton Friedman und der Wissenschaftliche Beirat für Familienfragen Elternkompetenz und Anteilscheine am Schulbudget – Gedanken über Reformpotenziale," Marburg Working Papers on Economics 200506, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. Wolfgang Kerber & Oliver Budzinski, . "Towards a Differentiated Analysis of Competition of Competition Laws," German Working Papers in Law and Economics 2004-1-1090, Berkeley Electronic Press.
    14. Ana B. Ania & Andreas Wagener, 2014. "Decentrqalized Redistribution in a Laboratory Federation," Vienna Economics Papers 1402, University of Vienna, Department of Economics.
    15. Kerber, Wolfgang & Eckardt, Martina, 2005. "Policy learning in Europe: The 'open method of coordination' and laboratory federalism," Thuenen-Series of Applied Economic Theory 48, University of Rostock, Institute of Economics.

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