Designing Governance as Collective Intelligence

44 Pages Posted: 16 Jun 2020 Last revised: 24 Jun 2020

See all articles by Hamed Khaledi

Hamed Khaledi

McCombs School of Business - University of Texas at Austin; The Eli Broad Graduate School of Management, Michigan State University

Date Written: August 31, 2019

Abstract

This research models governance as a collective intelligence process, particularly as a collective design process. The outcome of this process is a solution to a problem. The solution can be a decision, a policy, a product, a financial plan, etc. The quality (value) of the outcome solution reflects the quality (performance) of the process. Using an analytical model, I identify five mediators (channels) through which, different factors and features can affect the quality of the outcome and thus the process. Based on this model, I propose an asymmetric response surface method that introduces factors to the experimental model considering their plausible effects.

As a proof of concept, I implemented a generic collective design process in a web application and measured the effects of several factors on its performance through online experiments. The results demonstrate the effectiveness of the proposed method. They also show that approval voting is significantly superior to plurality voting. Some studies assert that not the design process, but the designers drive the quality of the outcome. However, this study shows that the characteristics of the design process (e.g. voting schemes) as well as the designers (e.g. expertise and gender) can significantly affect the quality of the outcome. Hence, the outcome quality can be used as an indicator of the performance of the process. This enables us to evaluate and compare governance mechanisms objectively free from fairness criteria.

Keywords: Crowdsourcing, Design Science, Mechanism Theory, Response Surface Methodology, Amazon Mechanical Turk, Distributed Autonomous Organizations

JEL Classification: C92, D72, D81, D82, D83

Suggested Citation

Khaledi, Hamed, Designing Governance as Collective Intelligence (August 31, 2019). Available at SSRN: https://ssrn.com/abstract=3592590 or http://dx.doi.org/10.2139/ssrn.3592590

Hamed Khaledi (Contact Author)

McCombs School of Business - University of Texas at Austin ( email )

2110 Speedway
McCombs School of Bussiness
Austin, TX 78705
United States
5174022026 (Phone)

The Eli Broad Graduate School of Management, Michigan State University ( email )

632 Bogue Street , North Business College Complex
Room N203
East Lansing, MI TX 48825
United States
5174022026 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
4
Abstract Views
68
PlumX Metrics