Maskin, Eric; Quan, Yingyi; Xu, Chenggang - 1997
We model organization as the command-and-communication network of managers erected on top of technology (which is …, and (b) providing managerial incentives. We show that two particular organizational forms, the M-form (multidivisional …, under certain empirical assumptions, the M-form is likely to be strictly preferable once incentives are taken into account …