This paper shows that cost allocation can endogenously arise as a coordination mechanism in a decentralized firm.This result is derived in a setting with multiple (internally supplied) resources shared by multiple users, which constitutes a departure from previous literature.While standard cost...

The 2005 reform of the German welfare system introduced two competing organizational models for welfare administration. In most districts, a centralized organization was established where local welfare agencies are bound to central directives. At the same time, 69 districts were allowed to opt...

Donor aid organizations (DAOs) are multi-layered and multi-dimensional bureaucracies with many departments trying to find solutions to problems for countries, investing staff resources and effort into having an effect. A department may come into conflict with other departments because of...