:  Radner R
:  The Organization of Decentralized Information Processing
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:  1993
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:  Econometrica
() :  5
:  61
:  Roy Radner. The Organization of Decentralized Information Processing // Econometrica, Vol. 61, No. 5. (Sep., 1993), pp. 1109-1146.
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In a decision-theoretic model of a firm, I represent managers as information processors of limited capacity; efficiency is measured in terms of the number of processors and the delay between the receipt of information by the organization and the implementation of the decision. I characterize efficient networks for both one-shot and repeated regimes, as well as the corresponding \production function\ relating the number of items processed to the number of processors and the delay. I sketch some applications to common decision paradigms, and implications for decentralization and organizational returns to scale.
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