On Group Stability in Hierarchies and Networks
A 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.
(This abstract was borrowed from another version of this item.)
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.:
- Kaneko, Mamoru & Wooders, Myrna Holtz, 1982.
"Cores of partitioning games,"
Mathematical Social Sciences,
Elsevier, vol. 3(4), pages 313-327, December.
- Salvador Barberà & Lars Ehlers, 2003.
"Free Triples, Large Indifference Classes and the Majority Rule,"
15, Barcelona Graduate School of Economics.
- 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 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.
- 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.
- 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.
- 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.
- 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.
- Guesnerie, Roger & Oddou, Claude, 1988. " Increasing Returns to Size and Their Limits," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(3), pages 259-73.
- 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, June.
- 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.
- Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, vol. 20(2), pages 201-237, August.
When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:112:y:2004:i:4:p:754-778. 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: (Journals Division)
If references are entirely missing, you can add them using this form.