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Bureaucracy in Quest for Feasibility

Author

Listed:
  • Hervé Crès

    (Département d'économie)

  • Itzhak Gilboa

    (Groupement de Recherche et d'Etudes en Gestion à HEC)

  • Nicolas Vieille

    (Groupement de Recherche et d'Etudes en Gestion à HEC)

Abstract

The head of an organization is viewed as dealing with an optimization problem under a variety of constraints. The bureaucracy, by contrast, is viewed as dealing with the constraints alone: it has to make a multitude of low-level decisions, in such a way that no constraint is violated. However, even the feasibility problem is computationally hard. Hence bureaucracies often try to rely on past cases, in the hope of making decisions that are feasible. We study the way that past cases might affect current choices, and show that, under certain conditions, the bureaucracy will guarantee feasibility only if it mimics its behavior in a single past case.

Suggested Citation

  • Hervé Crès & Itzhak Gilboa & Nicolas Vieille, 2012. "Bureaucracy in Quest for Feasibility," Sciences Po publications info:hdl:2441/dambferfb7d, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/dambferfb7dfprc9m2e02cub3
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    References listed on IDEAS

    as
    1. Itzhak Gilboa & David Schmeidler, 2003. "Inductive Inference: An Axiomatic Approach," Econometrica, Econometric Society, vol. 71(1), pages 1-26, January.
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