Speed and quality of collective decision making: Incentives for information provision

Hans Peter Grüner and Elisabeth Schulte ()

Journal of Economic Behavior & Organization, 2010, vol. 76, issue 3, 734-747

Abstract: Abstract We study a one-shot information aggregation problem in which agents have to provide effort in order to understand the information they are supposed to process. Agents have a common interest in reaching a good decision but suffer from an individual cost of providing effort. Showing that any problem which is incentive compatible for a single information processor is incentive compatible for a decentralized organization, but not vice versa, we derive a new rationale for decentralized information processing. For a class of problems, the fastest organization - the reduced tree proposed by Radner (1993) - yields also the best incentives for information processing.

Keywords: Information; processing; Hierarchies; Incentives; for; information; provision (search for similar items in EconPapers)
Date: 2010
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Related works:
Working Paper: Speed and Quality of Collective Decision-Making II: Incentives for Information Provision (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:76:y:2010:i:3:p:734-747

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