The Comparative Statics of Optimal Hierarchies

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2019
Volume: 11
Issue: 2
Pages: 1-25

Authors (2)

Cheng Chen (not in RePEc) Wing Suen (University of Hong Kong)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Several classes of models of hierarchical organizations share two common properties: the characteristics at different levels of the hierarchy are complementary, but this complementarity does not extend beyond adjacent levels. We propose a unified yet simple approach to study comparative statics of organizational characteristics with endogenous number of hierarchical layers in all these models. We use this new approach to study organizational decision making, and show that increased delay cost incentivizes the organization to empower lower level employees more than upper level employees.

Technical Details

RePEc Handle
repec:aea:aejmic:v:11:y:2019:i:2:p:1-25
Journal Field
General
Author Count
2
Added to Database
2026-01-25