|
Archive@NYU >
Stern School of Business >
IOMS: Information Systems Working Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/14134
|
| Title: | Real-Time Decentralized Information Processing and Returns to Scale |
| Authors: | Van Zandt, Timothy
Radner, Roy |
| Issue Date: | 6-May-1996 |
| Publisher: | Stern School of Business, New York University |
| Series/Report no.: | IS-96-06 |
| Abstract: | 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, decentralization does not unambiguously reduce delay,
because processing a subordinate's report precludes processing current
data. Because decision rules are endogenous, delay does not inexorably
lead to eventually decreasing returns to scale; however, returns are
more likely to be decreasing when computation constraints, rat her than
sampling costs, limit the information upon which decisions are
conditioned. The results illustrate that the requirement of
informational integration causes a breakdown of the replication
arguments that are often used to establish non-decreasing returns. |
| URI: | http://hdl.handle.net/2451/14134 |
| Appears in Collections: | IOMS: Information Systems Working Papers
|
All items in Faculty Digital Archive are protected by copyright, with all rights reserved.
|
