We study a model where some investors (“hedgers”) are bad at information processing, while others (“speculators”) have … superior information-processing ability and trade purely to exploit it. The disclosure of financial information induces a trade …

This Paper provides a game theoretic extension of Radner's (1993) model of hierarchical information aggregation. It … studies the role of the hierarchy design for the speed and quality of a collective decision process. The hierarchy is … described as a programmed network of agents. The programme describes how information is processed within the network. The …

the process of decision-making that starts with sensory perception and ends in action selection. The brain sets a neuronal … conditional on that (limited) information. We show that the optimal threshold is set in a way that existing beliefs are most … for the hypothesis that emotions help decision-making. Last, we discuss the implications for choices in concrete vs …

This Paper examines the optimal structure of management when a decision-maker must have a mass of information processed … before making a decision. They can either delegate processing tasks inside their own organization, in which case they retain … incorporating authority in a stylized model of information processing, we endogenize the comparative advantage of each form of …

Since Adam Smith's time, the division of labour in production has increased significantly, while information processing … of labour has raised the demand for clerical office workers, who process information that is used to coordinate … document the relationship between complexity and the employment of clerks using an early information technology (IT) revolution …

A group of P identical managers has to make a choice between N alternatives. They benefit from reaching the decision … respect to decision quality: two strictly balanced hierarchies and the fastest hierarchy, which is the skip-level reporting … speed and cost but also in terms of decision quality. …

the American productivity increase is due to the widespread introduction of new information and communication technologies … theoretical explanation for this productivity puzzle based on an extension of Radner's (1992) model of hierarchical information … aggregation. The introduction of new ICTs enables organizations to process any given amount of information with a shorter delay …

Conventional wisdom in economic history suggests that conflict between countries can be enormously disruptive of …