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Screening Efficiency of Networks

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  • D. Lanzi

Abstract

In this paper, we study screening efficiency of networks as organizations in comparison with polyarchies and hierarchies. Firstly, we briefly characterize these organizational architectures, then we rank them in the case of infinitely many and finitely many decisional units. As we show and discuss, networks are more efficient than polyarchies and hierarchical architectures with good initial choice portfolios. In opposition, whether Type II errors are very likely to occur, a hierarchy preforms better than polyarchies and networks. Finally, we illustrate how these organizations perform when a budget constraint has to be fulfilled.

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  • D. Lanzi, 2006. "Screening Efficiency of Networks," Working Papers 555, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:555
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