An organization is a collection of agents that interact and produce some form of output. Formal organizations - such as corporations and governments - are typically constructed for an explicit purpose though this purpose needn’t be shared by all organizational members. An entrepreneur who...

This paper studies the issue of designing an optimal organizational form: design for sub-units' task allocation, decision-making structure, and incentive schemes for organizational members. Depending on the way tasks are allocated between the sub-units, and whether decision-making is centralized...

We develop a theory of organization design in which the firm's structure is chosen to mitigate moral hazard problems in the selection and the implementation of projects. For a given set of projects, the 'divisional structure' which gives each agent the full responsibility over a subset of...

Organization design is a major factor determining an organization's performance and how the people work together in these organizations. In the paper, we argue that designing organizations should be scientific-based and forward-looking. This raises challenges in designing organizations in...

We consider a hierarchical organization with two fully rational agents. The goal of the organization is that of selecting the best alternative out of several available, and agents are heterogenous in the accuracy with which they screen the alternatives. We show that, if internal communications...

In this paper we want to analyze the internal divisional structure within an organi-zation in the framework of incomplete contract theory. We use the framework of Aghionand Tirole (1997) and define the managerial control structure as sequence of search.A key feature of this paper which...

A growing body of literature over the past decade suggests that a firm?s organizational structure/capital can contribute in significant ways to the productive capacity of a firm. But, as with other intangible assets, there is no consensus definition of what this organizational capital is, how to...

Today's internet is shaped largely by privately operated platforms of various kinds. This paper asks how the various commercially operated communication, market, consumption and service platforms can be grasped as a distinct organizational form of enterprise. To this end, we make a basic...