Organizational Structure [chapter]

2015 Growing Pains  
We present a computational model of the interaction between incentives and the allocation of decision rights in an organization. We show that a principal may obtain the implementation of desired organizational policies by means of appropriate incentives or by means of appropriate design of the allocation of decisions, when the latter is cheaper but more complex. Wa also show that when the principal is uncertain about which course of action is more appropriate and wants to learn it from the
more » ... onment, organizational structure and incentives interact in non-trivial ways and must be carefully tuned.
doi:10.1002/9781119176466.ch7 fatcat:bcx3irxgdne37ewpgbnas4a6ia