We study the properties of real-time decentralized information processing, as a model of human information processing in organizations, and use the model to understand how constraints on human information processing affect the returns to scale of firms. With real-time processing,...

We use a model of real-time decentralized information processing to understand howconstraints on human information processing affect the returns to scale of organizations.We identify three informational (dis)economies of scale: diversification of heterogeneousrisks (positive), sharing of...