On group stability in hierarchies and networks
AbstractA hierarchical structure is a widespread organizational form in many areas. My aim in this paper is to provide a rationale for this fact based on two premises. First, a group organizes itself so as to achieve efficient coordination. Second, efficient coordination is achieved only if subgroups as well as individuals agree to cooperate. Even in situations in which there are gains to coordination, the agreement of each possible subgroup may be impossible to reach, resulting in instabilities. I argue that a hierarchical organization avoids such instabilities by distributing in an optimal way autonomy and blocking power to a restricted set of subgroups. Comparisons with nondirected networks are drawn.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00581662.
Date of creation: 2004
Date of revision:
Publication status: Published, Journal of Political Economy, 2004, 112, 4, 754-778
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00581662/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Efficient Coordination; Instabilities; Hierarchical structure;
Other versions of this item:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Salvador Barberà & Lars Ehlers, 2011.
"Free triples, large indifference classes and the majority rule,"
Social Choice and Welfare,
Springer, vol. 37(4), pages 559-574, October.
- EHLERS, Lars & BARBERÀ, Salvador, 2007. "Free Triples, Large Indifference Classes and the Majority Rule," Cahiers de recherche 2007-02, Universite de Montreal, Departement de sciences economiques.
- Salvador Barberà & Lars Ehlers, 2003. "Free Triples, Large Indifference Classes and the Majority Rule," UFAE and IAE Working Papers 599.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 01 Feb 2007.
- Salvador Barberà & Lars Ehlers, 2003. "Free Triples, Large Indifference Classes and the Majority Rule," Working Papers 15, Barcelona Graduate School of Economics.
- Salvador Barber?Author-Email: email@example.com & Lars Ehlers, 2002. "Free Triples, Large Indifference Classes and the Majority Rule," UFAE and IAE Working Papers 512.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- EHLERS, Lars & BARBERÀ, Salvador, 2007. "Free Triples, Large Indifference Classes and the Majority Rule," Cahiers de recherche 02-2007, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Raaj Kumar Sah & Joseph E. Stiglitz, 1984.
"The Architecture of Economic Systems: Hierarchies and Polyarchies,"
NBER Working Papers
1334, National Bureau of Economic Research, Inc.
- Sah, Raaj Kumar & Stiglitz, Joseph E, 1986. "The Architecture of Economic Systems: Hierarchies and Polyarchies," American Economic Review, American Economic Association, vol. 76(4), pages 716-27, September.
- Martin Shubik, 1962.
"Incentives, Decentralized Control, the Assignment of Joint Costs and Internal Pricing,"
INFORMS, vol. 8(3), pages 325-343, April.
- Martin Shubik, 1961. "Incentives, Decentralized Control, the Assignment of Joint Costs and Internal Pricing," Cowles Foundation Discussion Papers 112, Cowles Foundation for Research in Economics, Yale University.
- Saijo, Tatsuyoshi, 1988. "Strategy Space Reduction in Maskin's Theorem: Sufficient Conditions for Nash Implementation," Econometrica, Econometric Society, vol. 56(3), pages 693-700, May.
- Debraj Ray & Rajiv Vohra, 2001. "Coalitional Power and Public Goods," Journal of Political Economy, University of Chicago Press, vol. 109(6), pages 1355-1384, December.
- Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, December.
- Kaneko, Mamoru & Wooders, Myrna Holtz, 1982.
"Cores of partitioning games,"
Mathematical Social Sciences,
Elsevier, vol. 3(4), pages 313-327, December.
- Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, vol. 20(2), pages 201-237, August.
- Guesnerie, Roger & Oddou, Claude, 1988. " Increasing Returns to Size and Their Limits," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(3), pages 259-73.
- Sharkey,William W., 1983. "The Theory of Natural Monopoly," Cambridge Books, Cambridge University Press, number 9780521271943, April.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.