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On stability and incentives in hierarchies

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  • Gabrielle Demange

Abstract

Situations where a group of individuals takes collective decisions are subject to instabilities when subgroups may form. In this paper, we analyze how a hierarchical organization avoids such instabilities, while distributing some power among the subordinates and the subgroups they may form. Incentives to reveal private information are also studied.

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  • Gabrielle Demange, 2001. "On stability and incentives in hierarchies," DELTA Working Papers 2001-09, DELTA (Ecole normale supérieure).
    • Handle: RePEc:del:abcdef:2001-09
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