We design a laboratory experiment to study behavior in a multidivisional organization facing a trade-off between … communication, we also find systematic deviations from optimal behavior in how the communicated information is used. Specifically … than predicted coordination in centralized organizations. We show that the observed deviations disappear when uncertainty …

We design a laboratory experiment to study behavior in a multidivisional organization. The organization faces a trade … communication, we also find systematic deviations from optimal behavior in how the communicated information is used. Specifically … than predicted coordination in centralized organizations. We show that the observed deviations disappear when uncertainty …