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Decentralization and the Search for Policy Solutions

Author

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  • Kollman, Ken
  • Miller, John H
  • Page, Scott E

Abstract

We use mathematical and computational models to analyze the ability of federated organizations to solve difficult problems. Federated organizations may have some inherent advantages for solving difficult problems since they can empower multiple subunits to search for policy solutions in parallel and exploit and combine the mutual information discovered by the subunits to reveal even better solutions. We find that the benefits of these methods of experimentation first increase and then decrease as the problem of finding good policies increases in difficulty. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Kollman, Ken & Miller, John H & Page, Scott E, 2000. "Decentralization and the Search for Policy Solutions," Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(1), pages 102-128, April.
  • Handle: RePEc:oup:jleorg:v:16:y:2000:i:1:p:102-28
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    Cited by:

    1. Ania, Ana B. & Wagener, Andreas, 2016. "Decentralized redistribution in a laboratory federation," Journal of Urban Economics, Elsevier, vol. 93(C), pages 49-59.
    2. Kotsogiannis, Christos & Schwager, Robert, 2006. "On the incentives to experiment in federations," Journal of Urban Economics, Elsevier, vol. 60(3), pages 484-497, November.
    3. Chang, Myong-Hun & Harrington, Joseph Jr., 2006. "Agent-Based Models of Organizations," Handbook of Computational Economics,in: Leigh Tesfatsion & Kenneth L. Judd (ed.), Handbook of Computational Economics, edition 1, volume 2, chapter 26, pages 1273-1337 Elsevier.
    4. Klein, Gordon & Wendel, Julia, 2014. "Innovation in European telecommunication regulation: The diffusion of regulatory remedies," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106862, International Telecommunications Society (ITS).
    5. Andreas Wagener, 2013. "Tax Competition, Relative Performance, And Policy Imitation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54, pages 1251-1264, November.
    6. Jean-Robert Tyran & Rupert Sausgruber, 2005. "The diffusion of policy innovations -an experimental investigation," Journal of Evolutionary Economics, Springer, vol. 15(4), pages 423-442, October.
    7. Wolfgang Kerber & Stefan Grundmann, 2006. "An optional European contract law code: Advantages and disadvantages," European Journal of Law and Economics, Springer, vol. 21(3), pages 215-236, May.
    8. Schnellenbach Jan, 2008. "Rational Ignorance is not Bliss: When do Lazy Voters Learn from Decentralised Policy Experiments?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(4), pages 372-393, August.
    9. Page, Scott E. & Tassier, Troy, 2007. "Why chains beget chains: An ecological model of firm entry and exit and the evolution of market similarity," Journal of Economic Dynamics and Control, Elsevier, vol. 31(10), pages 3427-3458, October.
    10. Steven Callande & Bård Harstad, 2015. "Experimentation in Federal Systems," The Quarterly Journal of Economics, Oxford University Press, vol. 130(2), pages 951-1002.
    11. Lars P. Feld & Wolfgang Kerber, 2006. "Mehr-Ebenen Jurisdiktionssysteme: Zur variablen Architektur von Integration," Marburg Working Papers on Economics 200605, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    12. Giampaolo Garzarelli & Lyndal Keeton, 2016. "Policy Experimentation and Intergovernmental Grants in a Federal System," Working Papers 8/16, Sapienza University of Rome, DISS.
    13. Lars P. Feld, 2006. "Regulatory Competition and Federalism in Switzerland: Diffusion by Horizontal and Vertical Interaction," CREMA Working Paper Series 2006-22, Center for Research in Economics, Management and the Arts (CREMA).
    14. William M. Tracy & Dmitri G. Markovitch & Lois S. Peters & B. V. Phani & Deepu Philip, 2017. "Algorithmic Representations of Managerial Search Behavior," Computational Economics, Springer;Society for Computational Economics, vol. 49(3), pages 343-361, March.
    15. Hans-Günter Krüsselberg, 2005. "Milton Friedman und der Wissenschaftliche Beirat für Familienfragen Elternkompetenz und Anteilscheine am Schulbudget – Gedanken über Reformpotenziale," Marburg Working Papers on Economics 200506, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    16. Rincke, Johannes, 2005. "Neighborhood Influence and Political Change: Evidence from US School Districts," ZEW Discussion Papers 05-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    17. Henning Klodt & Oliver Lorz, 2008. "The coordinate plane of global governance," The Review of International Organizations, Springer, vol. 3(1), pages 29-40, March.
    18. Christos Kotsogiannis & Robert Schwager, 2005. "Policy Innovation In Federal Systems," Urban/Regional 0504001, EconWPA.
    19. Wolfgang Kerber & Oliver Budzinski, "undated". "Towards a Differentiated Analysis of Competition of Competition Laws," German Working Papers in Law and Economics 2004-1-1090, Berkeley Electronic Press.
    20. Kerber, Wolfgang & Eckardt, Martina, 2005. "Policy learning in Europe: The 'open method of coordination' and laboratory federalism," Thuenen-Series of Applied Economic Theory 48, University of Rostock, Institute of Economics.

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