Teams with Variable Precision Information Structures: A Model for Organization Form.
Abstract
Motivated by considerations of optimal organizational form for a firm, a model is constructed that describes an organization as a team each of whose members has access to the same basic information seen through noisy channels. The amounts of noise on the channels are the control parameters of the problem and serve to characterize the organization. The chief advantages of this model are easier calculation of the optimal information structure--organizational form, and an easy way of characterizing bounded rationality by constraining the minimum amount of total noise that a decision maker must accept on his information. For analytic expediency, a general Linear-Quadratic-Gaussian model is constructed and solved for two special cases. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1979
- Accession Number
- ADA068725
Entities
People
- Nicholas M. Papadopoulos
Organizations
- Harvard University