MODELING COORDINATION IN ORGANIZATIONS AND MARKETS

Academic Article

Abstract

  • In an earlier issue of Management Science, Thomas Malone (1987) utilizes the concept of vulnerability costs in order to compare the degree of flexibility exhibited by markets and hierarchies. The purpose of this note is to redefine the concept of vulnerability to include the corresponding opportunity costs that are created when a coordinating structure restricts the ability to adjust to a change in market conditions. The conclusion reached is that those structures experiencing the lowest opportunity costs are the least vulnerable, and can therefore be classified as the most flexible.
  • Authors

    Status

    Publication Date

  • December 1992
  • Has Subject Area

    Published In

  • Management Science  Journal
  • Keywords

  • COORDINATION
  • INFORMATION PROCESSING
  • ORGANIZATIONAL ECONOMICS
  • ORGANIZATIONAL STRUCTURE
  • TRANSACTION COSTS
  • Digital Object Identifier (doi)

    Start Page

  • 1819
  • End Page

  • 1826
  • Volume

  • 38
  • Issue

  • 12