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Demange, Gabrielle – Journal of Political Economy, 2004
A hierarchical structure is a widespread organizational form in many areas. My aim in this paper is to provide a rationale for this fact based on two premises. First, a group organizes itself so as to achieve efficient coordination. Second, efficient coordination is achieved only if subgroups as well as individuals agree to cooperate. Even in…
Descriptors: Administrative Organization, Group Dynamics, Decision Making, Efficiency