On Organizational Decision Rules and Innovative Activity

Dirk Sliwka

Discussion Paper Serie A from University of Bonn, Germany

Abstract: We analyze a model in which agents exert effort to create innovations within an organization. When payments are infeasible, the decision on the implementation of a proposal is shown to be made by simple monotonic decision rules. Then we look for optimal rules in several contexts. A trade-off arises between the use of information and the incentives created by a rule. If the former dominates it will currently be optimal to install a hierarchy. Otherwise granting autonomy to the innovators may be better. The unanimity rule may be optimal if average proposals are bad for the organization and a strong filtering is necessary.

Keywords: Delegation; Decentralization; Incentives; Initiative; Decision Rules; Authority (search for similar items in EconPapers)
JEL-codes: D23 L20 (search for similar items in EconPapers)
Date: 1999-07

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bon:bonsfa:601

Access Statistics for this paper

More papers in Discussion Paper Serie A from University of Bonn, Germany
Address: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Series data maintained by Daniel Park ().