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Organizational Structure and Expected Output at Nuclear Power Plants

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  • Rothwell, Geoffrey

Abstract

This paper examines the relationship between organizational structure and operation and outage durations at nuclear power plants in the United States. It empirically examines Aoki's (1990) proposition that (1) hierarchical control increases productivity in situations that are very stable or very uncertain and (2) horizontal coordination increases productivity in intermediate situations. It describes a model of continuous production in which management chooses an organizational structure that minimizes the ratio of the hazard rates for operation and outage. And proposes an index of hierarchy based on measures of plant-level organization. Parameter estimates support the proposition that less hierarchy is associated with higher productivity through longer periods of operation. Copyright 1996 by MIT Press.

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  • Rothwell, Geoffrey, 1996. "Organizational Structure and Expected Output at Nuclear Power Plants," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 482-488, August.
  • Handle: RePEc:tpr:restat:v:78:y:1996:i:3:p:482-88
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    Cited by:

    1. John Rust & Geoffrey Rothwell, 1995. "Optimal Response to Shift in Regulatory Regime: the Case of the U.S. Nuclear Power Industry," Industrial Organization 9508002, University Library of Munich, Germany.
    2. Geoffrey Rothwell & John Rust, 1995. "A Dynamic Programming Model of U.S. Nuclear Power Plant Operations," Microeconomics 9502001, University Library of Munich, Germany, revised 06 Feb 1995.
    3. Koomey, Jonathan & Hultman, Nathan E., 2007. "A reactor-level analysis of busbar costs for US nuclear plants, 1970-2005," Energy Policy, Elsevier, vol. 35(11), pages 5630-5642, November.
    4. Masahiko Aoki & Geoffrey Rothwell, 2011. "Organizations under Large Uncertainty: An Analysis of the Fukushima Catastrophe," Discussion Papers 11-001, Stanford Institute for Economic Policy Research.
    5. Masahiko Aoki & Geoffrey Rothwell, 2013. "A comparative institutional analysis of the Fukushima nuclear disaster: Lessons and policy implications," Chapters,in: Comparative Institutional Analysis, chapter 8, pages 105-132 Edward Elgar Publishing.
    6. Jensen, J. Bradford & Rothwell, Geoffrey S., 1998. "Transaction costs, regulation, and subcontracting at nuclear power plants," Journal of Economic Behavior & Organization, Elsevier, vol. 36(3), pages 369-381, August.
    7. Masahiko Aoki & Geoffrey Rothwell, 2011. "Coordination Under Uncertain Conditions : An Analysis of the Fukushima Catastrophe," Governance Working Papers 23220, East Asian Bureau of Economic Research.
    8. Markus Reitzig & Boris Maciejovsky, 2015. "Corporate hierarchy and vertical information flow inside the firm—a behavioral view," Strategic Management Journal, Wiley Blackwell, vol. 36(13), pages 1979-1999, December.

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