The Robustness of Optimal Organizational Architectures: A Note on Hierarchies and Polyarchies

Posted: 21 Feb 2001

See all articles by Ruth Ben-Yashar

Ruth Ben-Yashar

Bar-Ilan University - Department of Economics

Shmuel Nitzan

Bar-Ilan University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Abstract

In this note we study the robustness of optimal organizational architectures, focusing on hierarchies and polyarchies. These two specific architectures are often applied in economic systems and have received considerable attention in the literature. It turns out that the application of these architectures usually involves inefficiency, namely, the use of suboptimal organizational systems. This is demonstrated by proposing a measure of size robustness of optimal architectures and by analyzing the implications of its magnitude for hierarchies and polyarchies.

Suggested Citation

Ben-Yashar, Ruth and Nitzan, Shmuel, The Robustness of Optimal Organizational Architectures: A Note on Hierarchies and Polyarchies. Social Choice and Welfare, Vol. 18, No. 1, 2001, Available at SSRN: https://ssrn.com/abstract=257196

Ruth Ben-Yashar

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel

Shmuel Nitzan (Contact Author)

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel
+972.3.531.8930 (Phone)
+972.3.535.3180 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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