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Continuous Approximations in the Study of Hierarchies

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Author Info
Timothy Van Zandt

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Abstract

Large organizations are typically modelled as hierarchies. Hierarchies are discrete structures (trees), but researchers frequently use continuous aproximations. The purpose of this article is to study the validity of these approximations. I show that modelling hierarchies with a continuum of tiers is not a good approximation. I also show, for a particular model of balanced hierarchies, that ignoring rounding operators and integer constraints in formulae derived from the discrete model can be a valid approximation, when hierarchies are suitably large. This is made precise by bounds on the relative errors of approximations.

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Publisher Info
Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 26 (1995)
Issue (Month): 4 (Winter)
Pages: 575-590
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Handle: RePEc:rje:randje:v:26:y:1995:i:winter:p:575-590

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  1. Van Zandt, Timothy, 2004. "Balancedness of Real-Time Hierarchical Resource Allocation," CEPR Discussion Papers 4276, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Jacek Cukrowski & Manfred M. Fischer, 2007. "Efficient organization of information processing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 13-26. [Downloadable!]
  3. Andrea Patacconi, 2005. "Optimal Coordination in Hierarchies," Economics Series Working Papers 238, University of Oxford, Department of Economics. [Downloadable!]
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