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Hierarchical Control and Optimum Firm Size

Oliver E. Williamson

Journal of Political Economy 1967

There is a great deal of evidence that almost all organizational structures tend to produce false images in the decision-maker, and that the larger and more authoritarian the organization, the better the chance that its top decision-makers will be operating in purely imaginary worlds. This perhaps is the most fundamental reason for supposing that there are ultimately diminishing returns to scale.

DOI
10.1086/259258
Volume
75 (2)
Pages
123-138
Language
en
Export
BibTeX
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