Limits Of Organization by Kenneth Arrow
A concise collection of essays analyzing why organizations cannot fully coordinate complex economic activity, emphasizing information costs, incentive problems, and the trade-offs between market mechanisms and hierarchical control. It argues that imperfect information and limited monitoring create moral hazard, adverse selection, and inefficiencies that constrain the size and scope of firms and bureaucracies, so organizational form must reflect the relative costs of communication, contracting, and supervision. Using formal models and conceptual analysis, it demonstrates that neither markets nor hierarchies are universally superior and that effective institutional design requires balancing delegation, decentralization, and incentive alignment to cope with the inherent limits of organization.
- Published
- Unknown
- Nationality
- American
- Length
- Unknown
- Pages
- Unknown
- Original Language
- English
- Avg User Rating
- No ratings yet
- Alternate Titles
- None
This book is not currently on any lists.