Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/221477 
Authors: 
Year of Publication: 
1995
Series/Report no.: 
Discussion Paper No. 1121
Publisher: 
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science, Evanston, IL
Abstract: 
This paper presents a model in which organizational structure emerges as the solution of an optimization problem. The objective is to compute the desired decisions in a given class of economic environments, and the constraints express limitation on the abilities of agents to compute and communicate. The "variable" to be solved for, whose values are interpreted as different organizational structures, is a type of directed graph (an EADAG). Depending on its structure, a solution graph may represent organization into one or more informationally independent units. The structure of solution graphs is derived from the nature of the coordination problem as expressed by the desired decision function.
Document Type: 
Working Paper

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