Cremer, Jacques, Garicano, Luis and Prat, Andrea (2004) Codes in organizations. 4205. Centre for Economic Policy Research, London, UK.Full text not available from this repository.
A code is a technical language that members of an organization learn in order to communicate among themselves and with members of other organizations. What are the features of an optimal code and how does it interact with the characteristics of the organization? This Paper develops a simple communication model and characterizes optimal codes. There exists a fundamental trade-off between choosing a specialized code that simplifies internal communication and a common code that facilitates external communication. We identify the drivers of this trade-off and we study the strategic aspects of code adoption. The results are used to interpret some existing organizational structures.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 2004 Jacques Crémer, Luis Garicano and Andrea Prat|
|Uncontrolled Keywords:||coding, communication cost and organization theory|
|Library of Congress subject classification:||H Social Sciences > HD Industries. Land use. Labor|
|Journal of Economic Literature Classification System:||D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior; Transaction Costs; Property Rights|
|Sets:||Research centres and groups > Managerial Economics and Strategy Group
Departments > Management
Collections > Economists Online
Departments > Economics
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
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