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Timothy Van Zandt
Professor of Economics
Book Chapter
Van Zandt T., Meagher K., Orbay H. (2003). Hierarchy Size and Environmental Uncertainty. In Advances in Economic Design (pp. 439-457). Springer.
The authors examine how a firm's changing environment and the information constraints of its managers interact as determinants of the size of the firm's administration. Following the recent decentralised information processing literature, they assume that it takes individual managers time to process information. A consequence is that it takes time for a firm to aggregate information, even when this task is shared.