The effect of organizational communication structure on performance is studied using a project selection framework in which heterogeneous, rational agents can reject or accept projects. A hierarchy performs better than a polyarchy in tough environments, whereas the reverse holds in friendly environments. Hierarchies can be too strict from a social welfare point of view. Indeed, if the value of profitable but rejected projects is taken into account, a single agent can perform better than a hierarchy.

,
, ,
doi.org/10.1016/S0167-2681(00)00087-1, hdl.handle.net/1765/11741
Journal of Economic Behavior & Organization
Erasmus School of Economics

Visser, B. (2000). Organizational Communication Structure and Performance. Journal of Economic Behavior & Organization, 42(2), 231–252. doi:10.1016/S0167-2681(00)00087-1