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The robustness of optimal organizational architectures: A note on hierarchies and polyarchies

Author

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  • Ruth Ben-Yashar

    (Department of Economics, Bar-Ilan University, 52900 Ramat Gan, Israel)

  • Shmuel Nitzan

    (Department of Economics, Bar-Ilan University, 52900 Ramat Gan, Israel)

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

  • Ruth Ben-Yashar & Shmuel Nitzan, 2001. "The robustness of optimal organizational architectures: A note on hierarchies and polyarchies," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(1), pages 155-163.
    • Handle: RePEc:spr:sochwe:v:18:y:2001:i:1:p:155-163
    Note: Received: 4 January 1999/Accepted: 10 January 2000 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.
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    Citations

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    Cited by:

    1. Ruth Ben-Yashar & Miriam Krausz & Shmuel Nitzan, 2018. "The effect of democratic decision-making on investment in reputation," Public Choice, Springer, vol. 177(1), pages 155-164, October.
    2. B. Visser, 2002. "Complexity, Robustness, and Performance," Tinbergen Institute Discussion Papers 02-048/1, Tinbergen Institute.
    3. BAHARAD, Eyal & BEN-YASHAR, Ruth & NITZAN, Shmuel, 2018. "Variable Competence and Collective Performance: Unanimity vs. Simple Majority Rule," Discussion paper series HIAS-E-80, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    4. Ben-Yashar, Ruth & Danziger, Leif, 2016. "The unanimity rule and extremely asymmetric committees," Journal of Mathematical Economics, Elsevier, vol. 64(C), pages 107-112.
    5. Barbara Luppi & Francesco Parisi, 2013. "Jury Size and the Hung-Jury Paradox," The Journal of Legal Studies, University of Chicago Press, vol. 42(2), pages 399-422.
    6. Eyal Baharad & Ruth Ben-Yashar & Shmuel Nitzan, 2020. "Variable Competence and Collective Performance: Unanimity Versus Simple Majority Rule," Group Decision and Negotiation, Springer, vol. 29(1), pages 157-167, February.
    7. Ruth Ben-Yashar & Miriam Krausz & Shmuel Nitzan, 2018. "Government loan guarantees and the credit decision-making structure," Canadian Journal of Economics, Canadian Economics Association, vol. 51(2), pages 607-625, May.
    8. BEN-YASHAR, Ruth & NITZAN, Shmuel, 2017. "A Note on the Possible Advantage of Size Flexibility in Committees," Discussion paper series HIAS-E-61, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    9. Ruth Ben-Yashar, 2006. "Information is important to Condorcet jurors," Public Choice, Springer, vol. 127(3), pages 305-319, June.

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