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The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.

When Does Coordination Require Centralization?

Open access
Alonso, Ricardo, Dessein, Wouter, Matouschek, Niko·2008·American Economic Review

Abstract

This paper compares centralized and decentralized coordination when managers are privately informed and communicate strategically. We consider a multidivisional organization in which decisions must be adapted to local conditions but also coordinated with each other. Information about local conditions is dispersed and held by self-interested division managers who communicate via cheap talk. The only available formal mechanism is the allocation of decision rights. We show that a higher need for coordination improves horizontal communication but worsens vertical communication. As a result, decentralization can dominate centralization even when coordination is extremely important relative to adaptation. (JEL D23, D83, L23, M11)

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Metadata

Authors
Alonso, R., Dessein, W., & Matouschek, N.
Venue
American Economic Review
Published
2008-03-01
Volume
98
Issue
1
Pages
145-179
ISSN
0002-8282 (ISSN-L)
OpenAlex
W2298519506
Cited by
623
References
1
FWCI
45.10
Type
journal article
Language
en
Open access
bronze

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.