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Nobel Laureates

A Partial Theory of the Optimal Organization of a Bureaucracy


Volume: Volume 11, No. 2

Issue: Autumn 1980

Pages: pp. 683-693

Authors: Jacques Cremer

Title: A Partial Theory of the Optimal Organization of a Bureaucracy

Abstract: This article models the choice of an organizational structure as the grouping of functions into units to obtain the most efficient coordination between related functions. We derive a simple formula which emphasizes the role of the organization as a reducer of uncertainty.


JEL Classification

Social Choice General (0250)