Publication Type

Working Paper

Version

publishedVersion

Publication Date

7-2002

Abstract

This paper studies collective decision making in the context of a project selection model. We derive the optimal decision architecture when marginal decision costs are present, and investigate the circumstances under which the hierarchy and polyarchy exist as optimal sequential architectures. Our analysis extends previous results on optimal committee decision-making to a sequential setting, and further demonstrates the fragility of the hierarchy and polyarchy as optimal architectures.

Keywords

optimal organizational design, decision architecture, project selection, fallibility

Discipline

Behavioral Economics

Research Areas

Applied Microeconomics

Volume

11-2002

First Page

1

Last Page

35

Publisher

SMU Economics and Statistics Working Paper Series, No. 11-2002

City or Country

Singapore

Copyright Owner and License

Authors

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