Large companies are usually organized into business units, yet some activitiesare almost always centralized in a company-wide functional unit. We firstshow that organizations endogenously create an incentive conflict between functionalmanagers (who desire excessive standardization) and...

There are N citizens who have to make a social decision about a set policies denotedby x ∈ A, where A denotes the set of feasible policies. Citizen’s preferencesover policy are denoted V i (x, j) ( where i = 1, ...,N) ,and j denotes the identityof the policy maker. This specification allows...