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Explicit and Latent Authority in Hierarchical Organizations

Author

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  • van den Brink, J.R.

    (Tilburg University, Center For Economic Research)

  • Gilles, R.P.

Abstract

We consider the problem of control of access to a firm's productive asset, embedding the decision makers into a structure of formal authority relationships.Within such a structure, decision makers act as principal to some decision makers, while they act as agent to other decision makers.We study under which conditions decision makers exercise their own authority and accept their superiors' authority.We distinguish two types of behavior.First, we investigate a non-cooperative equilibrium concept describing explicit exercise of authority. Second, we consider the possibility of subordinates to submit themselves to authority even though such authority is not enforced explicitly.

Suggested Citation

  • van den Brink, J.R. & Gilles, R.P., 2005. "Explicit and Latent Authority in Hierarchical Organizations," Discussion Paper 2005-75, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:b4225229-4c7a-433f-8340-a305db9036da
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    References listed on IDEAS

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    More about this item

    Keywords

    Authority; Hierarchy; Game Theory; Social situations;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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