Alonso Et Al Coordination Centralization[1]

7/31/2019 Alonso Et Al Coordination Centralization[1]

1/35

145

Amerian Eonomi Review 2008, 98:1, 145179

ttp://www.aeaweb.org/artile.pp?doi=10.1257/aer.98.1.145

Mv gz my v v. T

y, y m v - bw : m

y v yz v, y b

v. T v mg b m b

v , b v y mg mm-

w m. A q gz m w -

mm m y v z z

gz. I w, gz m w v mg mm- zy m v z m w

y mm vy w q w ?

T q g b b mg m . A D.

C, , g q z:

T mg y g m b. A m w mg m m - m . S w b bg m m b y w g -vy. Ty v mv bm m b .

C w vw, my m by b-

g z mvg w z. T , wv,

C (977, 78). S, , DmCy Cmm V Dv (M T. H, J M. Py,

J Rb 999), P & Gmb (C A. B 989) Jb S (Rb E PH 989).

When Does Coordination Require Centralization?

By Ricardo Alonso, Wouter Dessein, and Niko Matouschek*

Ti paper ompare entralied and deentralied oordination wen manag-er are privately inormed and ommniate trategially. We onider a mlti-diviional organiation in wi deiion mt be adapted to loal onditionbt alo oordinated wit ea oter. Inormation abot loal ondition idipered and eld by el-intereted diviion manager wo ommniate viaeap talk. Te only available ormal meanim i te alloation o deiionrigt. We ow tat a iger need or oordination improve oriontal om-mniation bt woren vertial ommniation. A a relt, deentraliationan dominate entraliation even wen oordination i extremely important

relative to adaptation. (JEL D3, D83, L3, M)

* A: M S B, Uvy S C, 3670 T Pwy, L Ag,CA 90089 (-m: R.A@m..); D: G S B, Uvy Cg,5807 S Ww Av., Cg, IL 60637 (-m: w.@CgGSB.); M: KggS Mgm, Nw Uvy, 00 S R, Ev, IL 6008 (-m: [email protected].). W g , w ym mm gg-. W Jm D, M Dw, L G, Rb G, Bb Gbb, Tm Hbb, PMgm, A P, C Pg, L Ry, S S, J Sw vy -. Fy, w v m mm.


2/35

MARch 2008146 ThE AMERIcAN EcONOMIc REVIEW

m mg w g b v z g-

z v v mg b mm w . A P.

S, g-m m G M (GM), , gz

GM mv m g v y v mg. 3, T

bw m, S v mm gv v mg y g . I 93, m, b G T

Cmm mg g v .

T mm m y v mg, my

v bg m g mb m g

m g . 5,6 I bg mm

w v, :

I bv y v gv y b bw O C w vg - w b b wy w y mg v y m g.7

T S GM z m zg -

v yg gg my b v w

z.8

T m fg vw by yzg w

q z. Dz gz v vg

g , m by mg w

b m b . Hwv, gz v

vg mg g b m

by . Mv, - v mg my z w

v. O mg vy z m w-v y m v . W g

g fw, w w z b m v w

3O G M b C- By Cmm, 7, My Year Wit GeneralMotor, by A P. S (96).

Wg m w GM v 93, , S , Ag G M gz, w I bv w y bb, v y O b G Mg Dv, bj y vy b w g C (96, 06).

5 S (96, 05).6 Syg G T Cmm, S , T Cmm w ,

, w bm y v O. E O w b b G Mg Dv (96, 07). Rfg mm , g w gv mg v g. I , - m. G T Cmm w m gz. I m m w y g. I bm w m. Smm mm w w v w v m, mm gg y , b m w my m w m m (96, 09).

7 S (96, 06).8 O, m , m m y mg gy m v

v w v PC (Cy A. Mgmy D Mg 00) AESC (Jy P 00). I 980 y 990, PC z vy w v , Pzz H, T B, KFC, m w w y - b.T mgm PC bv bw b v by g-g v mg m g m mv j g: Ig , v j vy b - by v, q. Dv v gv w gvv w y j vy. A , L m . Evy, y w. Iw m . Ty w g g (Mgmy Mg 00, ).


3/35

VOL. 98 NO. 1 147 ALONsO ET AL.: WhEN DOEs cOORDINATION REquIRE cENTRALIzATION?

vy m. Ivy, w bm vy m, v mg -

gz mm vy w z.

I , z, mm,

v mg q w mm. A , -

z b m v w bm vy m.T vg gz, w m m mv

gz w m :

D mg vv - bw . I , w

v b m m m b b g -

w g y v-

m . M (MNE), , my z m

by g g g. T vg, wv, m b

g v w .

Im b by v mg w b w

mmzg w v v gz.Mv, v mg mm m gy f

mg v. I MNE m bv, g mg y b

b m b m b v

z. I mmg m, y v v bv

gy f mg vg.

T gz mmm. I , y m mm gz-

mm g (S J. Gm Ov

H 986; H J M 990). T m m b m-

m m m y v wy. Cm-

m m (V P. Cw J Sb 98).

I g, w m m w gz : -

z v mg mm w zy m

z m, w z v mg mm-

vy w q mg w m b .

Uyg w z z gz

ggg m. I m, v mm wy m m-

v z mm. Ey, v mg b w

w v w q m mmz v , -

v mg m y g w q w

v mg. A , v mg m m w -

q y w . T qy z v

mm, wv, m, vy v, bm m

m. I , w w mm-

z, y mv mm z. Ivy,

w bm m m, q gy g m

v m v mg b . T m-

g gg m, w, , m bg mm.

I , z m mg

m wg v y . A , mg-

v gg mg m m mm.T qy z v mm m-

bm m m v : z


4/35


m z v w my m. Sy, ym-

m gz w v q z v m -

w m myz alway m

z w v mg v y g. T m

ymm gz w m qy w v . I gz w v

m z, g z g.

I. Related Literature

O , bw m, .

A. coordination in Organiation

A mb yz gz. H Bg Hmm

(00) - bw v b g g -y: z v mg y z b

, w z m g v b

v mg z y y. I H M (005), m g -

z vg b , w

b v . Ty yz m

v w b . Fy,

D, L G, Rb G (005), mg vy m

b b g v y, w m-

g vy m b v . Ty gz

v v mm v m w y w v m.

A y bw m - bw

z z b v m

b w . I , , y bv

z.9 Dz my v b y b

w b m. P B J F (990) v

mz - bw m. I m

y y w z g g w- b

y y. U , wv, B F (990)

mm.0

O z f v (P

Mgm 988; Mgm Rb 990), w g z g

gg w v m f mg. B w Mgm

(988) f v w, m y m g

m mg. I v, Jmy C. S (00),

Ogz Ozb (005), G Fb M R (006) g

m by v mg m v z wy mv

9Ow, - bw m - bw m bv. W by , ww b m .

0A G (999), q b b v y w bgg bw v bw. H w w b my m g.


5/35

VOL. 98 NO. 1 149ALONsO ET AL.: WhEN DOEs cOORDINATION REquIRE cENTRALIzATION?

. U , wv, mm

wy v.

B.Inormation Proeing in Organiation

T g m y, g w Jb M Ry R (97), -

m by m mg w m. Tm y

yz mg m w m y

m y mm m. I g b m v

bm m g gz. A m- m

y M A (986), w m y

v z m . I , m y

g, m b y mm .

I, w gz mm qy v f. A ,

y mm g gz g, w

v g m m.3 T , wv, g w Rv P w z g-

z wy wy m. I , w v m m w

Rv P g b mm mm. A

, z gz b y m.

O -mmm m w mb m-

g gz g m mm .

D (00) m w m bw gg

g g g mmg w g.5 M H

A Rvv (005) m b w v v m,

w A M (mg) gz mmm w y gm. T , wv, yz , y

w z mm.

A y v mm H R

(006). H yz gz w m , b

g w v . Amg ,

w ymm g b m ymm gz-

w, , g v.

A v -mmm m mm g

b m mm, Nm Mm, Mj,

O g my m w bw z z gz ( W E. O 999 B Lw006 vy).

I A (986), w w D T S (006) mg - bw - . T w w, m mm, v z gz g wg. A, Jq Cm, G, A P (007) yw y mm m . I m, gz - bwg mm gg, w w b mg , v z, gg, w b . I Ygy Q, G R, Cggg X (006),y, gz m (M-m U-m) m , g gz by g.

3F vy , D Mj (006).A yz w g - g m gm gm

w ymm m (F 987; F Rb Gbb 989; , m y, S Bg S M 00).

5S Ay M. M J G. M (005).


6/35


S R (99). I m, m w y

w w g (z) w m w w -

g (z). B g mm , z

g w b m, m, my b

v z g. U m, wv, z bw w g. T w z

g, , m m .

C. ceap Talk and Expert Literatre

Fm mg v, b -

b Cw Sb (98). I m, v m

g w v vy m b b . A

bw m Cw Sb (98) w w

v . A ,

Mm Ty Sb (99), w w by.6 A y bw y y mm qb w m-

b v, w w w qb w mb v. W w

qb mmz j y my g-

w, y v g bm w v qb. F

, w bv m m b g m Cw

Sb (98), w .7 W

m b Cw Sb (98) Mm Sb (99) w w m-

. A, M Bg (00) Vjy K J Mg (00)

m w m m , b bv

m m. T q y vg w, w, m m .8 I , m bv -

m w m mb v -g.

II. The Model

A gz w g v, Dv Dv , -

y q. Dvj [ 5, 6 g ,b by uj [ R, w , d [ R d [ R. I ,

Dv gv by

() p5K21d2u22d 1d2d2,w K [ R1 mmm v z. T q m

adaptation lo Dv d y

, , d Z u, q m oordination lo

Dv w y , , d Z d. T

6S S (989).7S A Bm, Ov B, K Kwm (007).8S M Ov P S (00), w y m mm-

g w m .


7/35


m d [ 30, ` 2 m m v . T Dv my gv by

() p5K21d2u22d 1d2d2,w K [ R1 mmm Dv z. W gy, w

K5K50. Hq g y .

A.Inormation

E v by mg. Mg , mg g Dv , vy

bv u b w z u. Smy, Mg

bv u b w u. T HQ Mg, , mg g q-

, bv u u. I mm wg, wv, u u my

b

32,

4

32,

4, vy, w [ R1. T w u u

.

B. Preerene

W m Mg mmz lp112l 2p, w Mg mmz 12l 2p 1lp, w l[ 3, 4 . T m l w b v mg w w v . T HQ Mg my ggg

w v mg mmz p 1p.9 F my, w

mg gv m g. Ivy, m,

v , , bjv m v,

b v mg w mmzg v , mg w b my f m

v.0, I , HQ Mg m y b

f v m gz,

v. I , gz mg m z v mg b

w w v by mg m m m

gz w v. A w bm bw, w b

v l, gz w wy l5 gz

w m qy w. Hwv, w yy b b gz

y g mg v v mg v m v-

. Fm, v m my ,

g y v y ggb m gy v

v. I m b, , m v mg

b gz .

9F bw, m HQ Mg y b. Qvy m w b b g y v mb Mg .

0 I C, w w gz w-v b by wg gz g m m v mg.

I m , m v my y w-v b v mg by v m . S, , BP S VI.

T f bw mvg v, , mg /mm, , b yz mb (S Ay Rb 00; D,G, G 005; Fb R 006). T w yy m gz b v mg w w v mv v, v g -v m. S .


8/35


C. contrat and commniation

W w y g (Gm H 986; H M 990)

mg gy m. I , gz mm

y g. Ag b v mv v mm ggg m. O

g v b , y b b m. W

w g. U deentraliation, Mg g

m d Mg g m d, b m

my. U entraliation, b g by HQ Mg.3

T mmm m m b mm yg

m y v m

m wy. Cmm m m m-

m: . F my, w m m mm

mm. I , z, Mg mg m [

M Mg , my, Mg mg m [M Mg . Uz, Mg my mg m [M m [M -

q. W mm bw v mg oriontal ommnia-

tion bw v mg q vertial ommniation. I

w w gm mm my

qbm m v y y m. Hwv, v

m gm g m Cw Sb (98),

q w m mm . S vw m-

m m mm b by mm g,

m b m m m mm. I , w

m y g , w m y gg bgg, b m w mm g bgg

gm.

A y m ymmy: v q z, y v m

, w m my. W ymm

gz, gy m y. I S VII, wv, w w ym-

m bw v w ymm .

T gm mmz Fg . F, g mmz

E 3p1p4 . U z HQ Mg g g m b, z v mg g g m .

S, v mg bm m b , , y u

u, vy. T, v mg mm w m. U

3 A v z w q mg, v -z z b g v. I m m . W m S VII.

S, m, Rb J. Am Sg H (003) K Mg (00).

m1

m2

d1 d

2

t1

t2

t3

t4

1

2

Figure . Timeline


9/35


z y gg v mm, g mg m m q-

, w z y gg z mm, gg mg

m m w . Fy, d d m. E m

mmz y, gv m b mm.

III. Decision Making

I w z mg z z,

g gv b m v u u. T, S IV

w z mm bgm gz b. Fy, S-

IV w w g mg mm bgm

m m w gz . T mm

A.

U z, HQ Mg v mg m m m v mg-

d d mmz E

3p1p Zm

4, , -

v gv mg m; 1m, m2 . T v bm v mb HQ Mg b u u gv m:(3) d

c; gcE 3uZm 4112gc2E 3uZm 4

() dc; 12gc2E 3uZm 4 1gcE 3uZm 4 ,

w

(5) gc;1 1 2d1 1 4d

.

N gc g d g m . W ,

, w d50, HQ Mg dc5E 3uZm 4 dc5E 3uZm 4 . A m

d , wg E 3uZm 4 m wg E 3uZm 4 wmg d. Evy, d S , m wg b , ,

dc5d

c5E 3u1uZm 4/.U z, v mg mg m m.

O mg v b g, Mg d mmz E 3lp 1 1 2l

2pZu, m

4, my, Mg d mmz E

3 12l

2p1lpZu, m

4.

T Mg m v mb , u,

E 3dZu,m 4 Mg m:(6) d5

l

l 1 du1 d

l 1 dE 3dZu,m 4 .

Smy, w v

(7) d5l

l 1 du1

d

l 1 dE 3dZu,m 4 ,

w E 3dZu, m 4 Mg Mg m. I v wg v mg g w-v b l g m d.


10/35


T E 3dZu,m 4 E 3dZu,m 4 v mg m b b by g (6) (7). Dg bg b

(6) (7), w Mg v mb

u, b b u, Mg b b u:

(8) dD ;

l

l 1 du1

d

l 1 da dl 1 2d E 3uZu, m 41 l 1 dl 1 2d E 3uZu, m 4 b .

Smy, w v

(9) dD ;

l

l 1 du1

d

l 1 da l 1 d

l 1 2dE 3uZu, m 41 d

l 1 2dE 3uZu,m 4 b .

I b d , Mgj5, wg v m uj

m wg wg vg b. A d S , v mg

y y mm m dD5dD5 1E 3uZu,m 41E 3uZu,m 4 2/.N , gv , y m q m-m w d S .

IV. Strategic Communication

I w yz mm w gz . A y

g w v mm m mv z

mm, , vy v, bm

m m. T mv z

mm b w v mm.W b by vgg v mg v m-

m. T w z, wg b, m-

m qb m qy v z mm.

Fy, w v w y b

qy mm.

A.Inentive to Mirepreent Inormation

T w mm w m, by yzg

v mg v m m. F ,

v mg by m m, , y

b y mmg w. Rg gz

, v mg gg . T ,

v Mg m m z.5 W mg

d, HQ Mg m wg g w d, g

u, Mg w . S E 3u450, m Mg ymm , E 3dZu4 w q m w b y m m v. I w, u.0, w -

q m d.0 m m v, u,0 w

q m d,0 m g. T q

5 T gm Mg g.


11/35


m m , Mg gg by g m.

u u.0 m,u u,0.

C v Mg m m w mm-

w Mg z. W Mg m d,

wg g w d, m g u, Mg w m. S E 3u450, m Mg y mm , E 3dZu4 w Mg m w b y m m -v. I , u.0, w Mg m m.

T Mg m g , Mg w m bv w

m m d. F , Mg g gg ,

, m.u.0. Smy, u,0, Mg gg by g m

,u Mg m m w w.

T v mg v m m qvy

m w gz . Mv, v b -

, v mg v g v gg m, m

b y w w v. T , wv, m w v gg by g . I ,

w z b v

mg v gg m, mg m z.

T , z HQ Mg more wg -

g d w d, wg g mm v u, Mg

w . A m HQ Mg

v v mm m v mg

v gg m. I , z, Mg le

wg g d w w d b, m wg g

u, Mg w m . A mMg m v mm m by v

mg v gg m.

T v m m m my, -

z. L n5E 3uZm4 b HQ Mg u vg mg m, Mg my y n. I w, Mg

by m m b . Iy, Mg w HQ

Mg v mmz y:

(0) n*5g max

n1

E 32l 1d2u2212l 2 1d2u22d 1d2d2Zu4 ,w d5d

c d5dc (3) (). W w bw qbm

v u q v u, , Em 3E 3uZm4 45E 3u450. Amg , w (0) b() n

*2u512l 2 1 2d

l 1 d u ; bcu .

S bc$0, m bv Mg gg w-

v u Z 0. Oy w u50 v v mm y. Mv,

b v gg g 0 u 0 . I gw vy bc g l d. T, bv, Mg v g-g g w-v b .


12/35


C, , v mg v m m

z. F , n5E 3uZu, m4 b Mg u vg mg m, g Mg my y n. H m

n gv by (0), w d5dD d5d

D (8) (9). I w m

g Em 3E 3uZu,m4 45E 3u450, w w b w qbm, -w , d.0,() n

*2u512l 2 1 2 1l 1 d 2

l 11 2 l 2 1 d u ; bDu .T, g Mg v m m w

u50, v gg u Z 0, v gg

g 0 u 0 . Mv, b v bD g l g d. T, bv, Mg v gg g w-v b

g .

B. commniation Eilibria

W w w , Cw Sb (98), mm qb v

qb w 32, 4 32,4 v v mg v y w v u u bg . I

, mg mm y m . Mv, z

vw m w y mm y bD bc

() ().

A mm qbm gz z by ()

mm v mg, (b) m, () b mg v. T mm Mg j 5 ,

bby g mg mj [Mj bvg uj, w

by mj 1mjZuj 2 . U z, m mg m [M m [M d [ R d [ R, w m by d

c1m 2 dc1m 2 . U -z, Mg m u mg m [M m [

M d [ R, w Mg m u mg

m [M m [M d [ R, w m by dD 1m, u2 dD 1m, u2 .

Fy, b by gj 1ujZmj 2 j5, bby uj bvg mg mj.

W By qb mm bgm w q ()

mm m v mg gv , (b) -

m m gv b , () b -

v m mm g By wv b. Fmy,

wv m1mZu2.0, m [ g mm[M E 3lpl112l 2plZu4 l5c,D, w pl p

l Dv gv m g dl 1 2

dl 1 2 . T qm m 1mZu2 g. U z, dc1 2

dc1 2 v m 1d,d2 E 3p1pZm 4 , z, dD 1 2

dD 1 2 v mdE 3lp1 12l 2pZm, u4 mdE 3 12l 2p1lpZm, u4 , -

vy. Fy, b y g 1ujZm 25mj 1mjZuj 2/eP mj 1mjZuj 2duj, w P55uj :mj

1mjZuj

2.0

6j5, .

S mm qb w b w b v qb, w byaj

N ; 1aj,2N, ,aj,2, aj, 0, aj, , ,aj, N2 ajN2 ; 1aj,2N, , aj,2,aj, , , aj, N2 g32j, j 4 N N2 v, vy, w aj,2N52j, aj, 050, aj, N5j .


13/35


T, ajN v qb w v mb v, aj

N2

w mb v. A w b w ,

ymmy b z, , aj, i5aj,2i i [ 5, ,N6.T wg z mm qb w d.0.

PROPOSITION (Cmm Eqb): Id [ 10, `2, ten or every poitive integer Nj, j5, , tere exit at leat one eilibrim 1m1 2, m 1 2 ,d1 2, d 1 2, g1 2, g 1 2 2, were(i) mj 1mj Zuj2i niorm, pported on3aj, i2,aj, i4iuj [ 1aj, i2,aj, i2;(ii) gj 1uj Zmj2i niorm pported on 3aj, i2, aj, i4imj [ 1aj, i2,aj, i2;(iii)aj, i12aj, i5aj, i2aj, i21baj, iori5, ,Nj2,

aj,2

11

22aj,2i5aj,2i2aj,2

1i2

21baj,2ior i5, ,Nj2,

witb5bcnder entraliation, werebci defned in(11), and

b5bDnder deentraliation, werebDi defned in(12);

(iv)dj 1m, uj 25djc,j5, , nder entraliation, were djcare given by (3) and (4), and dj 1m, uj 25djD,j5, , nder deentraliation, were djDare given by (8) and (9).

Moreover, all oter fnite eilibria ave relationip between uanduand te manager

oie o dand dtatare te ame a toe in ti la or ome vale o N N; tey aretereore eonomially eivalent.

T mm qb Fg . I qb, v

mg mm w v . T z v m

by q () . T z v 1aj, i12aj, i 2q z g v 1aj, i 2 aj, i22 , bcaj, i z bD aj, i z, w aj, i vg bw w v. R

m S IVA bcuj ,j5, , bw uj w

Mgj w HQ Mg bv . Smy, bDuj,j5, , -

by w m Mgj w m w g v

mg z. T v m y m

w qy mm uj wy m m.6 I v

v m m g 0 uj 0 , y m m g 0 uj 0 , b w mm bm g 0uj 0 .

P z mm qb d.0. I b y

, mm qb gw. I , -

z, -g b d50 , , v f

bw v mg. W qb, w m mg

6T b g m Cw Sb (98). I m, b bw w w v bv , qv-y, v gw b baj, i .


14/35


y w d5 0 mg -g qbm. U

z, mm v w d50 m v

mg q , w, , bv y. T m

d50 mm g w By qbm

z. My mv w -m , w g gy, w m d50 mm qb-

m z b P .7

P w m mb v

b qbm. T Cw Sb (98), w

mmm mb v wy . T

m , my uj50 j5, , w v

v y g.8 I Cw Sb (98) by .

T w m w mb v g y,

g b b P By qbm

mmz qbm.

PROPOSITION (Ey): Te limit o trategy profle and belie 1m1 2, m 1 2, d1 2, d 1 2,g1 2, g 1 2 2 a N,N S ` i a peret Bayeian eilibrim o te ommniation game. In tieilibrim te total expeted proft E3p1p4 are iger tan in any oter eilibrim.

A qbm w mb v g y v

Fg . I qbm z v my m w uj,j5

, , z b gw 0 uj 0 . W bv b m gz b qbm mmz v ,

w qbm y.

7 S q (0).8 W w Mm Sb (99); S I.

Figure . Communication Equilibria


15/35


C. commniation comparion

W w m qy mm w gz

yz w by g w-v b. W

m qy mm v E 3 1uj2E 3ujZmj 4 2

4 uj ,j5, .T mm v v v z mm.LEMMA :In te mot efient eilibrim in wi N,N S , te reidal variane i given

by

(3) E 3 1uj2E 3ujZmj 4 245slsj j5, l5c,D,were

() sl5bl

3 1 4bl.

T v y v mg v m-

m () (). I , w bl50, l5c,D, v

mg y v m v z. A bl

, m mm qbm v .

Fy, bl S , v mg v y w v gv

sl S 1. W w wg .

PROPOSITION 3 (T Qy Cmm):

(i) sc5sD50 il5 and sD.scoterwie;

(ii) 0sD/0l.0sc/0l.0;

(iii)0sc/0d.0.0sD/0dandmdS`sD5mdS`sc.

P () () Fg 3

w v mm

g m z mm-

. T , l5, mm b g-

z , m (),

w-v b l

m m z

v mm. T ,

z, l

b b

mg v. I ,

z, l

m b mg by v.P () Fg w qy w

m mm m . A

SD

SC

1/2

0

1/4

11

Figure 3. Communication Comparison (l)


16/35


S IVA, y y

g d v

v mg m

m z b

m z. P () w d ,

qy w m mm-

y b y v.

T b by g m

S III m w d S ,

mg z

z vg: b

q

vg . I g

qy mm vg.

D. Organiational Perormane

W w gz .

PROPOSITION (Ogz Pm): under entraliation te expeted proft are

given by

(5) Pc52 1Ac112Ac2sc2 1s1s2 ,and nder deentraliation tey are given by

(6) PD52 1AD1BDsD2 1s1s2 ,were

(7) Ac;2d

1 1 4d, AD ; 2 1l2 1 d 2d1l 1 2d 2 2 , BD ; d

4l3 1 6l2d 1 2d2 2 l21l 1 d 2 2 1l 1 2d 22 .T w b gz

yg y

1s

1s

2 m v

sl 1s1s2 , l5c,D.S HQ Mg mg , -b w bz w y m, , sc50. I w m (5) -

b gv by 2Ac1s1s2 . I v g v mg b.

T z m -b bm HQ

Mg g y m. I , m b v m-

g w w v, m mm w

. T g d:

y w mm, b

y gv mm qy.T z m b, b b m-

mm b v mg mg b. S

SD

SC

0 1

1/4

1

0

Figure . Communication Comparison (d)


17/35


w-v b w mm m b

mg, y . T m d, ,

mbg: mv mm b y gv m-

m qy.

V. Centralization versus Decentralization

W w m m w gz . A vg

z gz mg w

m. I , z gz m m w

mm m. Ny, m m

by z gz .

Hwv, w z vg g ,

vg g . T w .

F, v mg y z , ,

v wg g . S, v - q mg w m w w . U

z y , b m by m mg. I

, z Mgj5, b w Mg kZj

w m mm bw m m. I m, v mg b

g v g m v , w q-

m y .

T mm w b , wy w

z wy w z. T

mm, ALl5 E 3 1dl2u211dl2u24 , l5c,D, wgz cLl5E 3 1d

l

2dl

2

4 .LEMMA : For all l [ 3, 4 andd [ 30, `2, ALc$ALD and cLc#cLD .

I w w, w DAL;ALc2ALD$0 adaptation advantage -

z DcL ; cLD2cLc$0 oordination advantage -

z . T v m w b

(8) Pc2PD52DAL 1dDcL .

Fm z

vg,

vy z w v

d y m-

. A y g

g fw. T ,

Fg 5, w v m

Pc2PD 1s1s25.9 T g w w l. y m, -

z y m z

y d. I w, Dg

9 S b Pc PD 1s1s2 , g 1s1s25 w gy.

C

D

1

Figure 5. Organizational Performance

in Three Dimensions


18/35


Pw g b g b m mg

v v y gwy ,

.30 T, m bv, z m z v

w vy m. Ey, w w-v b vy m

vy m, v mg v b v -m w . I , by q

m by v mm bm

bm m m. A , vg

z m vg z v

w vy m.

Fg 5 w z y m z y w-v-

b l. w d.0 y m. Cz -

m z y w b w-v

b g g. Fy, g w w gz m

qy w w l5, d50, d S . W l5 d50, -

v f bw v mg bw m q , ,-b z b . T w

m qy w w d S ` mm q mg

mm w b vg m w

bm m, w w vy. T m v

m w gz m my.

PROPOSITION 5 (Cz v Dz): sppoe tatl. andd.0:

(i) lmall: il[1, 7/82, ten deentraliation tritly dominate entraliation.(ii) dmall: id[10, d 2, ten deentraliation tritly dominate entraliation, were d .0 i

defned in te proo.

(iii) d and l large: i d[ 1d , `2, ten deentraliation tritly dominate entraliationorall l[ 37/8, l1d22, and entraliation tritly dominate deentraliation or all l[ 1l1d2, 4,were l1d2.7/8i defned in te proo.

T Fg 6

mmz m g w -

bv. W w

m .

Small l: T P 5

w w w-v b l.

y m, vg

z wg

vg z .

I , w v

w m b-

y g. T , w

30 F Dg P , , Mgm Rb (99).

0.5 0.6 0.7 0.8 0.9 1.0

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1

Decentralization

Centralization

17/281/2

0

1

10.5 0.6 0.7 0.8 0.9 1.0

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

Decentralization

Centralization

17/28

/(1 )

1/2

0

1

1

Figure 6. Organizational Performance

in Two Dimensions


19/35


w-v b m, y z mg vy m

, , v gz m w m

y by qy z v mm. N

m m , b z mm,

v mg . I , w v mm, w m m q-

m. A bm m m,

vg z bm m m

v vg z . A , z

m z v w vy m.

T m my, bw w

gz gv by (8), w DAL vg -

z DcL vg z . A l5,

v f bw v mg bw m q.

A , w m qy w m ,

, DcL5DAL50. C w mg w-v b:

(9) d1PC 2 PD 2

dl5

'PC

'SC'SC

'l2'PD

'SD'SD'l

52dDAL

dl1d

dDCL

dl l5.

T qy w , l5, w-v b v

m w gz y g qy m-

m. Sm g mg v -

mg l5. T qy w

w-v b b m v-g z vg z . I -

, w-v b w v mm, w

by q m. A , -

vg z , , dDAL/dl.0 d [ 10, ` 2 .A w-v b w z mm, w

by v mg , , vg

z , , dDcL/dl.0 d [ 10, `2 . Ov, v by q wg v v m-

g by . I w, w l5, dDAL/dl.ddDcL/dl d [

10, `

2,

1Pc2PD

2/l,0. S Pc2PD50 l5, m Pc2PD

,0 w l. y m.

Smalld: T P 5 w w -

y m, z m z ,

v mg b. Ey, v w vy m, mm-

y b . U z by q

, w z by

v mg . S m d m

m , z m m m mm

z . A , z m z.

T m my, v m w gb d50. Cy, w d50 v f bw v

mg bw m q , , Pc2PD50. C w


20/35


mg v m w

, w b b by g (8):

(0)d1PC 2 PD 2

dd

52dDAL

dd

d50.

T w d50, mg d Pc2PD

y w vg z .

T b vg DcL wg d vg b

q z. T -

vg, w v mm, w m

by q . T by v mg

, , by y g qy z m-

m, mg bv w y mv. I

v d50 v-

g, , dDAL/dd.0. Fmy, d50 l.,

()d1PC 2 PD 2

dd52

dDAL

dd52 c'ALC

'SC'SC'd

2'ALD

'SD'SD'd

d52'ALC'SC

dSC

dd,0.

S d50 l., Pc2PD50 d1Pc2PD2/dd,0, z m z gb d50.

Large d and l: T w P 5 w z

m z w v mg vy b -

vy m. T , , w z m z w v mg y b

y m. I , y d[ 1d , `2 , z ym z w w-v b y g. T w -

. F, w v mg vy b, v mm m

z mm, b Fg 3. S,

w-v b mg by v mg b by q,

mg z gy m mg

z w w-v b g. I b w -

z m z w v mg vy b

m.

VI. Empirical Implications

I , m m b g - .

F , w m b w b v v

mg , , w m m v m-w

. O w q m b bw v

gz m. W ,

mmz P 5 Fg 6. F, gv ,

, g, b v bw w-v b g

w m z. S, gv w-v b, , g, b v bw g z. T,

bw w-v b g z


21/35


y y g. Smy,

bw g z y v-

mg y b w w v. Fm w

bw v vy m, w v v mg vy

b, b my z.W m y b g - , m

mg b g v g m. T -

m m, g v

v y w g m v.3

S , g mv v- ,

v v mg m w m wg y

v m-w .3 T m , g-

v, bby gz, mv w z,

b g m w v mg m b w w v

m w y b.

W w y g m vg y -. T , wv, m m v w b m

m. I , z q bg

v mg v. B 98, , GM w y g

my m w v mg vg m w

w v, v w m

w . Ivby, ym gg - v

. I w v b v mg -

y mmz w v . 33

A , GM w bm z by b-

g v v mm z mm. Eqym, wv, w w v m b v

mg v. I , GM G M B P w

v b w b w

v w. 3 Ag S, B P y m

bg ym - mg z w vy. 35

B Pm (BP) v m m bg v

z m. I y 990 g v, w BPX,

w by J Bw, w bm BP v. H z BPX,

g m 50 m-m b . Iy, b w

y b m, y my

w b BPX w. 36 T g

bw b , BPX b g m mm GM

m w b g m-

. A, GM, BPX mm

3 Tg v 980 y 990, m, m g w w m m gb m b mm m g w b y v w -v v (H, Py, Rb 999, ).

3 I C, w w v m w v mg m v- b gz w-v b.

33S (96, 09).3 S (96, 07).35S (96, 09).36 M T. H B v Og (00, 3).


22/35


g by g m v b w

m m, j b w v, b bg

b . A , L w v g

b m b gg - b vv w BP,

b yy .37

VII. Asymmetric Organizations

A y m ymmy gz: w v q

z, y v m , w m my.

I w ymmy m vg w ymm bw

v v m z z gz. W

w w ymm v z, -

z b m v w vy m , b

w m. S y vy m, w j

ymmy, my q mg. D m - v z bfy . T m y

Wb A (vb ://www.wb.g/

.?=0.57/.98..5).

A. seential Deiion Making

I m g, v mg my v -mv vg, , my b

b m b v mg . T b-

y, w w v m w mg z

qy. I , Mg Mg w. A b v mg v bv , w

g mg . N m ; w bv

m w .

Sq mg m w y b .

A , mg m q mg -

g z b m v w vy

m. T, wv, . T , Fg 7, w -

v m z z w q mg w

s5s

. I b w

y m, z y

m z w q

mg y l.. T w

q

mg v z. F,

w mg q-

y, m

y , w

w w b j

gy. A ,

b q

m mg. S,

37 H v Og (00, 8).

Centralization

Decentralization

1/2

0

1

1

1

Figure 7: Organizational Performance with

Sequential Decision Making when s

5s


23/35


b m y , w g -

v m m f mg. A ,

mm q mg w m

mg. T w m b w w gg

m w b m mg. O g q, m m .

W q mg w z b m v

w vy m, m g. T ,

Fg 7. W g w y l., z m z

w d g g, w , y d.0, z

m z w w-v b l. m g. T,

z m z v v mg

b w w v. T z v g

m v m w, s.s

. T b Fg 8,

w v m

z z - v R;s

/1s1s2 . Ey, bgg s

v s, m gz-

b m mm

u z w q

mg, b -

z m v z.

B. Oter Aymmetrie

I m gz, v w m .

T m g gz

y b yz R (006). I

Wb A, w m

w R (006) wg v v . W

w y l., z m z w bm

y m v. Imy, wv, ,

y , z m z w w-v b

l. y m. O .

A m v v m b z.

I Wb A, w m w Dv gv by

ap 12a 2p, w a [ 1, 2 m m v z wv. O g b w y l., z m z-

y m. I , wv, z

wy m z gb l5, v a bg,

T, ymm gz, b w m.

VIII. Conclusions

W q z? I w q

m w m b mg vmg w mm gy m w v

v gz. W w v mm m z

Figure 8: Organizational Performance with

Sequential Decision Making when

RKs/1s1s2.

R = 1R = 5/6R = 2/3

Centralization

Decentralization

1/2

0

1

1

1


24/35


mm: v mg m m w b q

y w . Hwv, qy w m mm-

m, vy v, bm m m. A

, z b m v vy m. I ,

ymm gz w v q z v m - w m myz alway m

z w v mg v y g. T m

ymm gz w m qy w

v . I gz w v

m z, g z g.

T y m gy m , gby, m b -

g m Cw Sb (98), w -

. T b g mm qbm w

mb v g y. A , v g bm

w v qb m. W mw

w v g v bm gg m gz g y m m.

O z b m v vy m

m F A. Hy (95) my m w v v

wg z mg gz. I

mgm , vw bm w Dg P.38 O g -

m Dg P w m m.

F, gm mg q g

g mg w v m. T vm-

mg v m w g

b y mm (M J Wm H. Mg 99).I wg gm v w w g v v

mm ? O y gg : v b y y

mm , wg m w z. T m

m z g vb v

mg v m m m. A g v mg

b, m z gz wg

z.

S, Dg P m z

m mm. I, wv, v m

mg m mg y b w b

mg wy q mm. O y gg

w wg gv v mg m vg, q

mm vg. A , q y b m ggg

m. D m ggg, w w -

z , v vy m. T -

m ggg bm m m, v mg mm

m y w . A , qy z v-

mm m vy .

A myg m m w-v b gy gv

gz . A w b gz

38 S, , Mgm Rb (99).


25/35


w-v b by wg m g m m v m-

g. P m wy w b v mg

v qy , m by

v. I g, m gv v mg

v mv . I , -g mg by gvg v mg q v-

. S v mg qy , wv, m my m

gv v mg m v

w v. I , y m b

g v mg w-v b m mv mm ,

z, mv mg b g z

gz z , b g gz w -

m m. A , w j z b

m v w vy m .

T w g m m g

w my vgg bw g-z w-v b v mg. I m m yz

, v bw w-v b g

z w g, w z m y

w-v b w w. W j m w

g v, v bw w-

v b g z w g. W

w, wv, w m g g v-

mg w my m w v. I

m, , w z gz w vy b v

mg w m, z gz w yb v mg w m.

By m gz g, mg y

z m b. T , wv, w v bw

z mv m v g-v m. O ,

mz Hmm (999) , my, Rb (00), w m-

v m m w y g v v mg

w m g v mg m

b.39 T gg mv m by -

zg g w q , GM BP m, by vg

b v mg g z v. I, g

v m, , b g-w v

v by m. A m m b g w .

Appendix

W m vb m i ui by v

mg mi. T wg mm w b g A.

LEMMA A: For any ommniation eilibrim onidered in Propoition 1, Eu 3mm4 5Eu 3um 45Eu 3u45Eu 3m 45Eu 3uu450 and Eu 3m m 45Eu 3um45Eu 3u45Eu 3m45E

u 3u

u4

50.

39 S Rb (00, 065).


26/35


PROOF:

A q w m u u qbmEui 3m i 45Eui 3ui 450.

PROOF OF PROPOSITION :W y By qbm mm gm, m

gv b y (3) () z (8) (9)

z. Nw w w b mm qbm v

qb.

F z, m 1 2 b y mm Mg . T y Mg , Hq Mg n

u, gv by

(A) Eu

3u Zu, n

452Eu

Sl

1d

c2u

21

12l

2 1d

c2u

21d

1d

c2dc

2

4,

w

(A) dc;gcn112gc2E3u Zm 1 2 4 ;

(A3) dc;12gc2n1gcE3u Zm 1 2 4 .

I y 10/0u0n2Eu 3u Zu, n4.0 10/0u2Eu 3u Zu, n4,0. T m y w Hq Mg, y n,n

,

m y Mg w bw b. Nw y

v qb w u

,u

Eu 3u Zu

, n

4$Eu 3u Zu

, n4 Eu 3u Zu, n4 .Eu 3u Zu, n4 . B Eu 3u Zu, n4 2Eu 3u Zu, n4 ,Eu 3u Zu, n4 2Eu 3u Zu, n4 , w v 10/0u0n2Eu 3u Zu, n4.0. T m gm b Mg y g gy m1 2 Mg . T, qb m-m gm z m b v qb.

F z, m1 2 m 1 2 b mm Mg Mg . Sq y m , qbm, m m

(8) (9). I n u Mg , 10/0u0n2Eu 3u Zu, n4.0 w g g.W w z qb mm gm, , qb

mb . F Mgj, aj b

32j ,j 4 , y mg mj[1aj, i2,aj, i 2 b by mj, i, mj, i b v b v uj vg mg mj, i.Centralization:I a, i Mg m b bw g mg

m, i m

, i1, Eu 3u Za, i, m , i 42Eu 3u Za, i, m, i1450.Ug Lmm A (A), w v

(A) Eu 3u Za, i,m , i 42Eu 3u Za, i, m , i145l 1gcm , i12a, i 2 1

12l

2 12g

c2m

, i11d

1g

c2

2m

, i12

1l

1g

cm

, i2a

, i 2

112l 2 12gc2m, i1d 1gc22m , i 2 .


27/35


Sbg m, i51a, i21a, i 2/, w v Eu 3u Za, i, m , i 42Eu 3u Za, i, m , i1450 y a, i51a, i21a, i12/11bc2 , w bc (). Rgg ,w g

(A5) a, i12a, i5a, i2a, i21bca, i .

L mb m a b N. Eqbm w v mb m

w N5N, N5N1 w qbm m-

b m. Ug by a,052 a,N5 v

q (A5) gv

(A6) a, i5s11xNC 2 yNC2 Ax ic1 1ycN22y ic1 1xNc2 B or0#i#N,

w xcyc gv byxc5

1 1bc

21

"11 1 2bC

22 2 1yc5

1 1bc

2

2"11 1 2bC2 2 2 1 yxcyc5, wxc.. I y k#N,a,k5a,N2k, , v ymmy b z. W N5N,.., v mb m, a,N/50. I w my

w (A6)

(A7) a, i5s11xN1C 2 yN1C 2 1x ic2y ic2 or0#i#N .

F qbm w mb m,N5N1, ymm -

v z w Hq Mg u z. I

w my w (A6)

(A8) a, i5s11x2N111C 2 y2N111C 2 Ax ic1xcN1ycN122y ic1xcN11ycN2 B or#i#N .

T y Mg g.

Decentralization:I Mg bv u mg m, i -

bm, i Mg , y gv by

(A9) Eu

3u Zu,m

, i

452Eu

3l

1d

D2u

21

12l

2 1d

D2u

21d

1d

D2dD

2

4,

w dD d

D gv by (8) (9). I m g b Eu 3u Za, i, m , i 4 2Eu 3u Za, i,m , i1450. Mg Lmm A (A9), w v (A0)

Eu 3u Za, i,m, i 42Eu 3u Za, i, m, i14 1m , i1d21l1d 2 a, i 2 dm , i1 l 1m , i1d21l1d 2 a, i 2 5qld 112l 2 1d r

1l1d

2

1l1d

2

1l1d

2

1l1d

2

1l1d

2

1m , id21l1d 2 a, i 2 dm , i l 1m , id21l1d 2 a, i 2 2qld 112l 2 1d r . 1l1d 2 1l1d 2 1l1d 2 1l1d 2 1l1d 2


28/35


Sbg m , i51a, i21a, i 2/ m , i151a, i1a, i12/, w v Eu 3u Za, i,m, i 42Eu 3u Za, i, m, i1450 y a, i51a, i21a, i12/1 1bD2 , w bD (). Rgg , w g

(A) a, i12a, i5a, i2a, i21bDa, i .

Ug by a,052 a,N5 v q (A)

gv

(A) a, i5s11xND 2 yND 2 AxDi 1 1yDN22yDi 1 1xDN2 B or j5, and0#i#N,

w xD yD gv byxD5

1 1bD

21

"11 1 2bD

22 2 1

yD5

1 1bD

2

2"11 1 2bD 2 2 2 1 yxDyD5, wxD.. I y k#N,a,k5a,N2k, , v ymmy b z. W N5N,.., v mb m, a,N/50. I w my

w (A)

(A3) a, i5s11xN1D 2 yN1D 2 1xDi2yDi 2 or0#i#N.

F qbm w mb mN5N1, ymm v

z w Hq Mg z. I w

my w (A)

(A) a, i5s11x2N111D 2 y2N111D 2 AxDi 1xDN1yDN122yDi 1xDN11yDN2 B or#i#N.

T y Mg g.

F P Lmm , w w m wg mm.

LEMMA A: (i) E3mjuj 45E3mj4 or j5, ; (ii) E3mj4 i tritly inreaing in te nmber ointerval Nj or j5, ; and(A5) E3mj45s2j

4s 1x3NjC 2 1 2 1xC 2 1 221xNjC 2 1 23 1x2C 1 xC 1 1 2 2

xNjC 1xC 1 1 2 2xC1xNjC 2 1 2 2t .

PROOF:

() Gv qbm g g, w v mj5E3uj 0ujH 1aj, i2, aj, i 2 4 j5, , w m

(A6) E1 3mjuj 45E3E3mjuj 0uj[1aj, i2,aj, i 2 4 45E3mjE3uj 0uj[1aj, i2,aj, i 2 4 45E3mj4 .


29/35


() Ug (A6) w mE1mj2 w:(A7) E3mj45 1

2sjaNj

3aj,i

aj, i21

aaj,i 1 aj,i212

b2duj5 18s1

aNj

1aj, i2aj, i22 1aj, i1aj, i22

5s2j

8 1xNjC 2 yNjC 2 3aNj UA 1ycNjB3xc3 1i22 1xc12 1xc221A 1xcNjB3yc3 1i22 1yc12 12yc21A 1xcNjB3yc3 1i22 1yc12 12yc2

1A 1ycNjB A 1xcNjByci21yc22 1xc12 21 1ycNj 2 1 1xcNj 2xci21xc22 1yc12V.

Pmg mm bv g xcyc5, w g,

m gy ,

(A8) E3mj45s2j4

s 1x3NjC 2 1 2 1xC 2 1 221xNjC 2 1 2 3 1x2C 1 xC 1 1 2 21xNjC 1 1 2 2 1yC 1 1 2 1xC 1 1 2

xNjC 1xNjC 2 yNjC 2 2 t

5s2j

4s 1x3NjC 2 1 2 1xC 2 1 2 21xNjC 2 1 23 1x2C 1 xC 1 1 2 2

xNjC 1xC 1 1 22xC1xNjC 2 1 22t .

T E3mj4 y g Nj, (A9) 1p 25 p3 2 11p 2 1 2 3

1xC 2 1 2 21x2C 1 xC 1 1 2 2p1p 2 1 22

1xC 1 1 22xC

(A0) 91p 2523 p 1 11p 2 1 2 31xC 2 1 221x2C 1 xC 1 1 2 1

p 1 11p 2 1 2 31xC 1 1 2 2

xC

5p 1 11p 2 1 2 3

10x2C 1 x4C 1 1

xC1x2C 1 xC 1 1 2 .

T,9 1p 2.0 p.. SE3mj451j/21xcNj 2 , b E3mj4 yg Nj.

PROOF OF PROPOSITION :

F, w b m gy b 1m1 2 , m 1 2 , d1 2 , d 1 2 ,g

1

2, g

1

2 2 N,N S ` by

1m

`

1

2, m

`

1

2, d

`

1

2, d

`

1

2, g

`

1

2, g

`

1

2 2

By qbm mm gm, b z z. T , w y vy g g Mg

Mg b 1d` 1 2 , d` 1 2 2 . Nw, uj


30/35


m m b v by g

m w u9j. B Nj uj

b v by g m u9j g gy -

b 1m1 2 , m 1 2 , d1 2 , d 1 2 , g1 2 , g 1 2 2 qbm Nj.T, uj by v g g 1m

`

1 2 , m`

1 2 2 b 1d` 1 2 , d` 1 2 2 . T qbm w - mb m Mg Mg w m

b by yg Lbg Dm Cvg Tm

Pl w l55c,D6.Fy, w w qbm 1m` 1 2 , m` 1 2 , d` 1 2 , d` 1 2 , g` 1 2 , g` 1 2 2 y g

qb.

Centralization:T z gv by

(A) Pc52E

3 1d

c2u

21

1d

c2u

21d

1d

c2dc

2

4.

Ug (3), (), Lmm A A(), w v , gvN,N,

(A) E3 1dc2u245s2gc12gc2Eu 1m2112gc2Eu 1m 2 ;E3 1dc2u245s112gc2Eu1m 22gc12gc2Eu 1m2;E3 1dc2dc2451gc22 1Eu 1m21Eu 1m 2 2 .

T w g w v mgEuj 1mj 2 gv by 0Pc(A3) 51 1d 2 1gc22 .

0Euj 3mj4S gc ., w v 0Pc/0Euj 3mj4 .0. Fm Lmm A(), w v Euj 3mj4

wNj Pc mb mNj

Mgj .

Decentralization:T z gv by

(A) PD52E3 1dD2u211dD2u21d 1dD2dD24 .Ug (8), (9), Lmm A A(), w v , gvN,N,

(A5) EC 1dD2u2D5 d21l 1 d 22s2d32l 1 3d1l 1 d 2 2 1l 1 2d 22Eu 3m 41

d21l 1 2d 2 2Eu 3m 4 ;

EC 1dD2u2D5 d21l 1 d 2 2s1 d2

1l 1 2d 22Eu 3m 42d32l 1 3d1l 1 d 2 2 1l 1 2d 2 2Eu 3m4 ;

EC 1dD2dD2D5 l21l 1 d 2 21s1s22ld2l 1 3d1l 1 d 22 1l 1 2d 2 2AEu 3m 41Eu 3m 4 B .


31/35


T w g w v mgEuj 1mj2 0PD(A6) 5

l2d2

1l 1 d

22

1l 1 2d

22a6d2 1l1 ad

lbb .

0Euj

3mj

4S l., w v 0PD/0Euj 3mj4.0. Fm Lmm A(), w v Euj 1mj2 wNj PD mb m Nj Mg j

.

PROOF OF LEMMA :

Tg m m g- (A8), w b

(A7) limNjS`

1x3NjC 2 1 2 1xC 2 1 2 2

1xNjC 2 1

23

1x2C 1 xC 1 1

25

xC 2 1

x2C 1 xC 1 1;

(A8) limNjS`

xNjC 1xC 1 1 22xC1xNjC 2 1 225 0.

T

(A9) limNjS`

E3mj45s214

1xC 1 1 2 21x2C 1 xC 1 1 2 5s21

1 1 bC

3 1 4bC512sc2sj,

w sc5bc/13 1bc2 . Fy, g Lmm A(), w v (A30) E3 1uj2E3uj 0mj 4 245sj2E3mj45scsj.T y z g ( y cwD -

bv).

PROOF OF PROPOSITION 3:1 ) Fm () (), w mmy l5, bD5bc50 sc5sD50.Fm, b/

13 1b

2 y g b, w ,

wv l., bD.bc. S #l#, l1d.l1d2l.0, g

bD bcw v

(A3)bD

bC5

1l 1 d 2 1l 1 d 2d 1l 1 d 2 l2 2 ..

()By y g sc sD, w

(A3)'SC

'l5

3 12d 1 1 2d

18ld 2 d 1 3l

22

$0;

(A33)'SD

'l5

3 12ld 1 l2 1 2d2 1 2l2d 218ld 2 d 2 l 1 5l2 22 .0.


32/35


Cmg 0sD/0l20sc/0l g l$, w v

(A3)'SD

'l2

'SC

'l5

g 1l,d 218ld 2 d 2 l 1 5l2 2 2 13l 2 d 1 8ld 2 2.0,w

(A35) g 1l, d 2 ; 3d3 1l2213ld 18l2213ld 1l2219l3d3 1l22 13l 191d10d213ld 13 15d 2 .() S 0bc/0d5l 1l22/1l1d 2.0 0bD/0d52l 1l22/1l1d2l2,0, w 0sc/0d50sc/0bc 0bc/0d.0 0sD/0d50sD/0bD 0bD/0d,0. Fy, by -

g m, w v

(A36) limdS`

bc51l22 ;(A37) lim

dS`bD51l22 ,

w m limdS`

sc5limdS`

sD.

PROOF OF PROPOSITION :

Centralization: Fm (A) (A) Lmm , w v

(A38) Pc52 1Ac1s1s2112Ac2sc1s1s2 2 .Decentralization: Fm (A) (A5) Lmm , w v

(A39) PD52 1AD 1s1s21BDsD 1s1s2 2 .PROOF OF LEMMA :

Sbg (3) () ALc cLc mg Lmm A

gv

(A0) ALc5a21 1 8d 11 1 d 2

14d 1 1

22

12sc2b 1s1s2

(A) cLc5111 1 4d 2 212sc2 1s1s2 .

Smy, bg (6) (7) ALD cLD mg Lmm

A, w b

(A) ALD5da 11l 1 d 2 22

12d2 2 l2 21l 1 d 2 2 1l 1 2d 2 212sD2b 1s1s2

(A3) cLD5l21l 1 d 2 2a2

d 12l 1 3d 21l 1 2d 2 2 12sD2 b 1s1s2 .


33/35


Sbg (A) m (A0) w ALc2ALD q

(A)ld 12l 2 1 2 1v0 1 dv1 1 d2v2 1 d3v3 1 d4v4 2 1s21 1 s22 214d 1 1 22 13l 1 d 18l 2 1 2 2 1l 15l 2 1 2 1 d 18l 2 1 2 2 1l 1 d 2 1l 1 2d 2 ,

w v0 ; l 15l22 , v ; l 133l100l272 , v ; 129l10l100l3252 , v3 ;

17l160l232 , v ; 6153l202 . I gw vy vi.0, i5, ..., , l[3, 4 . I (A) w ALc2ALD50 d50 l5 ALc2ALD.0 w.

N, bg (A) m (A3) w cLD2cLc q

(A5)ld 12l 2 1 2 1g0 1 dg1 1 d22g 1 d33g 2 1s21 1 s22 214d 1 1 22 1l 15l 2 1 2 1 d 18l 2 1 2 2 13l 1 d 18l 2 1 2 2 1l 1 d 2 1l 1 2d 2 ,

w g0 ;

l

165l27

2, g

;l

107l

180l27

2, g

;

125l

1l

160l323

2,

g3 ; 1l132 18l22 . I gw vy gi.0, i5, , 3, l[3, 4 .I (A5) w cLD2cLc50 d50 l5, cLD2cLc.0 w.

PROOF OF PROPOSITION 5:

Ug P w v Pc2PD gv by

(A6)1s21 1 s22 2ld 12l 2 1 2 f

14d 1 1

2 13l 1 d

18l 2 1

2 2 1l

15l 2 1

21 d

18l 2 1

2 2 1l 1 d

2 1l 1 2d

2,

w

(A7) ; d3 1l22 18l2721d 15l22 123l16l2521ld 125l150l1722l 15l22 .

N m y v d[30, ` 2 l[3, 4 . T, Pc2PD d[30, `2 l[3, 4 . A, Pc2PD50 d50, l5, 50. Ll 1d 2 b v l[3, 4 w v50 d[30, `2 ; l 1d 2 Fg 6. N mdS`l

1d

257/8 l

1d

25, w d

.0.957 my by

13d

13d

133d32250. N l 1d 2 g d[3d, ` 2 .() Dg (A6) gvd1Pc2PD2 d 1s1s2

(A8) 24

3orl5,

dl 1 1d 2w gv d.0. S 1Pc2PD250 l5, m Pc2PD,0 gb l5.

() (): S l

1d

2 g d, w l5, Pc2PD,

0 d[10, d

2 Pc2PD.0 d[1d

, `2 . T , g 1Pc2PD25g l5,5 13d13d133d322 . I b ,0 d[10, d 2 .0 d[1d, ` 2 .


34/35


REFERENCES

Aoki, Masahiko. 986. Hz v. V Im S Fm.Amerian EonomiReview, 76(5): 9783.

Alonso, Ricardo, and Niko Matouschek. Fmg. R Dg. RAND Jornal o Eo-

nomi.Athey, Susan, and John Roberts. 00. Ogz Dg: D Rg Iv C.

Amerian Eonomi Review, 9(): 0005.Aumann, Robert J, and Sergiu Hart. 003. Lg C T.Eonometria, 7(6): 69-60.Baliga, Sandeep, and Stephen Morris. 00. C-, Sv, C T.Jornal o Eo-

nomi Teory, 05(): 5068.Bartlett, Christopher A. 989. P & Gmb E: Vz L. Hv B S C

9-38-39Battaglini, Marco. 00. M R Mm C T. Eonometria, 70():

3790.Blume, Andreas, Oliver Board, and Kohei Kawamura. 007. Ny T. Teoretial Eonomi, ():

3950.

Bolton, Patrick, and Joseph Farrell. 990. Dz, D, Dy.Jornal o Politi-al Eonomy, 98(): 8036.Chandler, Alfred D. 977. Te Viible hand: Te Managerial Revoltion in Amerian Bine. Cm-

bg, MA: B P.Crawford, Vincent P., and Joel Sobel. 98. Sg Im Tm.Eonometria, 50(6):

35.Cremer, Jacques, Luis Garicano, and Andrea Prat. 007. Lgg Ty Fm. qar-

terly Jornal o Eonomi, (): 37307.Dessein, Wouter. 00. Ay Cmm Ogz.Review o Eonomi stdie,

69(): 838.Dessein, Wouter, and Tano Santos. 006. Av Ogz.Jornal o Politial Eonomy, (5):

95695.Dessein, Wouter, Luis Garicano, and Robert Gertner. 006. Ogzg Syg. Ub.

Eccles, Robert, and Philip Holland. 989. Jb S: Rgzg 99. Hv BS C 8906.

Farrell, Joseph. 987. C T, C, Ey.RAND Jornal o Eonomi, 8(): 339.Farrell, Joseph, and Robert Gibbons. 989. C T C M Bgg.Jornal o Eonomi

Teory, 8(): 37.Friebel, Guido, and Michael Raith. 006. R A Fm S. Ub.Gertner, Robert. 999. C, D R, S Fm. Ub.Grossman, Sanford J, and Oliver D Hart. 986. T C B Ow: A Ty V-

L Ig.Jornal o Politial Eonomy, 9(): 6979.Hannan, Michael T., Joel M. Podolny, and John Roberts. 999. T Dm Cy Cmm V-

Dv. S B S C IB-7.Hansen, Morten T., and Bolko von Oetinger. 00. Ig T- Mg. Kwg Mg-

m N G.harvard Bine Review, 79(3): 066.Harris, Milton, and Artur Raviv. A D-Mg Ay.Review o Finane, 9(3):

35383.Hart, Oliver, and Bengt Holmstrm. 00. A Ty Fm S. Ub.Hart, Oliver, and John Moore. 990. Py Rg N Fm. Jornal o Politial

Eonomy, 98(6): 958.Hart, Oliver, and John Moore. 005. O Dg H: C v Sz.

Jornal o Politial Eonomy, 3(): 67570.Hayek, Friedrich A. 95. T U Kwg Sy.Amerian Eonomi Review, 35(): 5930.Holmstrm, Bengt. 999. T Fm Sbmy. Jornal o Law, Eonomi, and Organiation,

5(): 70.Jensen, Michael C., and William H. Meckling. 99. S G Kwg, Ogz

S. I contrat Eonomi, . L W H Wj. 57 O: Bw.

Krishna, Vijay, and John Morgan. 00. A M E. qarterly Jornal o Eonomi, 6():7775.

Krishna, Vijay, and John Morgan. 00. T A Cv: Eg Im m Eg M-Sg Cmm.Jornal o Eonomi Teory, 7(): 779.


35/35


Lockwood, Ben. 006. F Dz: A P Emy Pv. I Te handbook oFial Federalim, . E. Am G. B, 3360. Nm, MA: Ew Eg.

Marino, Anthony M., and John G. Matsusaka. 005. D P, Agy Pbm, I-m: A Em Ay C Bgg P. Review o Finanial stdie, 8():305.

Marshak Jacob, and Roy Radner. 97.Eonomi Teory o Team. L: Y Uvy P.Melumad, Nahum, Dilip Mookherjee, and Stefan Reichelstein. 99. A Ty Rby C-

.Jornal o Aonting and Eonomi, 5(): 58.Melumad, Nahum, and Toshiyuki Shibano. 99. Cmm Sg w N T.RAND

Jornal o Eonomi, (): 7398.Milgrom, Paul, and John Roberts. 99.Eonomi, Organiation and Management: Egw C,

NJ: P H.Milgrom, Paul R. 988. Emym C, If Av, E Ogz Dg.

Jornal o Politial Eonomy, 96(): 60.Montgomery, Cynthia A., and Dianna Magnani. 00. PC R. Hv B S

C 9-79-078.Mookherjee, Dilip. 006. Dz, H, Iv: A Mm Dg P-

v.Jornal o Eonomi Literatre, (): 36790.Oates, Wallace E. 999. A Ey F Fm.Jornal o Eonomi Literatre, 37(3): 09.Ottaviani, Marco, and Peter Sorensen. 00. Im Aggg Db: W S S

F?Jornal o Pbli Eonomi, 8(3): 393.Ozbas, Oguzhan. 005. Ig, Ogz P, A R.Jornal o

Finanial Eonomi, 75(): 0.Pfeffer, Jeffrey. 00. Hm R AES C.: T C Mg Dm. S-

B S HR3.Qian, Yingyi, Gerard Roland, and Chenggang Xu. 006. C Em M-Fm

U-Fm Ogz.Jornal o Politial Eonomy, (): 3660.Rantakari, Heikki. 006. Gvg A. Ub.Roberts, John. 00. Te Modern Firm: Organiational Deign or Perormane and Growt: O:

O Uvy P.

Sloan, Alfred P. 96.My Year wit General Motor. Nw Y: Dby.Stein, Jeremy C. 989. C T F: A Ty Im Py Am.Ameri-

an Eonomi Review, 79(): 3.Stein, Jeremy C. 00. Im P C A: Dz v H-

Fm.Jornal o Finane, 57(5): 899.

Documents

Alonso Et Al Coordination Centralization[1]