The Comparative Statics of Optimal Hierarchies
Keyword(s):
Several classes of models of hierarchical organizations share two common properties: the characteristics at different levels of the hierarchy are complementary, but this complementarity does not extend beyond adjacent levels. We propose a unified yet simple approach to study comparative statics of organizational characteristics with endogenous number of hierarchical layers in all these models. We use this new approach to study organizational decision making, and show that increased delay cost incentivizes the organization to empower lower level employees more than upper level employees. (JEL D21, D23, L23, M10)
2016 ◽
Vol 44
(2)
◽
pp. 177-184
◽
2012 ◽
Vol 11
(1)
◽
pp. 7-19
◽
2019 ◽
Vol 8
(3)
◽
pp. 227-252
2021 ◽
Vol 1902
(1)
◽
pp. 012090
2021 ◽
pp. 095441192110029
Keyword(s):