Complexity and organizational architecture
This paper examines how features of organizational architecture, with organizations whose members screen projects, affect organizational screening performance. The paper explores consequences for organizational design of a theorem (attributed to Von Neumann by Moore and Shannon) on how to build reliable networks using unreliable components. The paper examines general properties of committee decision making and shows the superiority of committees with respect to composition, that is when each member of organization is replaced by a replica of the entire organization. The paper links with the modern Condorcet Jury Theorem literature. It also shows that organizational screening performance is sigmoid in individual screening performance for hierarchies of polyarchies and for polyarchies of hierarchies. The supermodularity and sub-modularity properties of organizations’ screening performance allows us to link with results from the theory of teams. When agents are heterogeneous, hierarchies favor sorting and polyarchies favor mixing.
References listed on IDEAS
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.:
- Peter M. DeMarzo & Dimitri Vayanos & Jeffrey Zwiebel, 2003.
"Persuasion bias, social influence, and uni-dimensional opinions,"
LSE Research Online Documents on Economics
454, London School of Economics and Political Science, LSE Library.
- Peter M. DeMarzo & Dimitri Vayanos & Jeffrey Zwiebel, 2003. "Persuasion Bias, Social Influence, and Unidimensional Opinions," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 909-968.
- Zwiebel, Jeffrey H. & Vayanos, Dimitri & DeMarzo, Peter M., 2001. "Persuasion Bias, Social Influence, and Uni-Dimensional Opinions," Research Papers 1719, Stanford University, Graduate School of Business.
- Kremer, M & Maskin, E, 1996.
"Wage Inequality and Segregation by Skill,"
96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
- Sah, Raaj Kumar & Stiglitz, Joseph E, 1988. "Committees, Hierarchies and Polyarchies," Economic Journal, Royal Economic Society, vol. 98(391), pages 451-70, June.
- Ioannides, Yannis M., 1987. "On the architecture of complex organizations," Economics Letters, Elsevier, vol. 25(3), pages 201-206.
- Yannis Ioannides, 2006.
"Topologies of social interactions,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(3), pages 559-584, 08.
- Yannis Ioannides, 2001. "Topologies of Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0104, Department of Economics, Tufts University.
- Yannis M. Ioannides, 2004. "Topologies Of Social Interactions," Econometric Society 2004 North American Winter Meetings 287, Econometric Society.
- 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.
- 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.
- Marengo, Luigi, et al, 2000.
"The Structure of Problem-Solving Knowledge and the Structure of Organizations,"
Industrial and Corporate Change,
Oxford University Press, vol. 9(4), pages 757-88, December.
- Luigi Marengo & Giovanni Dosi & Paolo Legrenzi & Corrado Pasquali, 1999. "The structure of problem-solving knowledge and the structure of organisations," LEM Papers Series 1999/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992.
"A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades,"
Journal of Political Economy,
University of Chicago Press, vol. 100(5), pages 992-1026, October.
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010. "A theory of Fads, Fashion, Custom and cultural change as informational Cascades," Levine's Working Paper Archive 1193, David K. Levine.
- Michael Kremer & Eric Maskin, 1996. "Wage Inequality and Segregation," Harvard Institute of Economic Research Working Papers 1777, Harvard - Institute of Economic Research.
- Jan W. Rivkin, 2000. "Imitation of Complex Strategies," Management Science, INFORMS, vol. 46(6), pages 824-844, June.
- Stanley Reiter, 1995. "Coordination and the Structure of Firms," Discussion Papers 1121, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Sah, Raaj Kumar & Stiglitz, Joseph E, 1985. "Human Fallibility and Economic Organization," American Economic Review, American Economic Association, vol. 75(2), pages 292-97, May.
- Szentes, Balazs & Koriyama, Yukio, 2009. "A resurrection of the Condorcet Jury Theorem," Theoretical Economics, Econometric Society, vol. 4(2), June.
- Koh Winston T. H., 1992. "Variable evaluation costs and the design of fallible hierarchies and polyarchies," Economics Letters, Elsevier, vol. 38(3), pages 313-318, March.
- Gehrig, Thomas & Régibeau, Pierre & Rockett, Katharine, 1998. "Project Evaluation and Organizational Form," CEPR Discussion Papers 1888, C.E.P.R. Discussion Papers.
- Visser, Bauke, 2000. "Organizational communication structure and performance," Journal of Economic Behavior & Organization, Elsevier, vol. 42(2), pages 231-252, June.
- Sah, R.K., 1991.
"Fallibility In Human Organizations And Political Systems,"
625, Yale - Economic Growth Center.
- Raaj Kumar Sah, 1991. "Fallibility in Human Organizations and Political Systems," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 67-88, Spring.
- Prat, Andrea, 2002. "Should a team be homogeneous?," European Economic Review, Elsevier, vol. 46(7), pages 1187-1207, July.
- Mount,Kenneth R. & Reiter,Stanley, 2007.
"Computation and Complexity in Economic Behavior and Organization,"
Cambridge University Press, number 9780521037891, June.
- Mount,Kenneth R. & Reiter,Stanley, 2002. "Computation and Complexity in Economic Behavior and Organization," Cambridge Books, Cambridge University Press, number 9780521800563, June.
When requesting a correction, please mention this item's handle: RePEc:eee:matsoc:v:64:y:2012:i:2:p:193-202. See general 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.