A Caltech Library Service

Organizational Diseconomies of scale

McAfee, R. Preston and McMillan, John (1995) Organizational Diseconomies of scale. Journal of Economics and Management Strategy, 4 (3). pp. 399-426. ISSN 1058-6407. doi:10.1111/j.1430-9134.1995.00399.x.

Full text is not posted in this repository. Consult Related URLs below.

Use this Persistent URL to link to this item:


Private information creates a cost of operating a hierarchy, which becomes larger as the hierarchical distance between the information source and the decision maker increases. When information about a firm's capabilities is dispersed among the individuals in the firm, production is inefficient even though everyone behaves rationally. Because hierarchies need rents in order to function, a firm with a long hierarchy may not be viable in a competitive industry.

Item Type:Article
Related URLs:
URLURL TypeDescription ItemWorking Paper
Additional Information:© 1995 Wiley.
Issue or Number:3
Record Number:CaltechAUTHORS:20170906-142105421
Persistent URL:
Official Citation:McAfee, R. P. and McMillan, J. (1995), Organizational Diseconomies of scale. Journal of Economics & Management Strategy, 4: 399–426. doi:10.1111/j.1430-9134.1995.00399.x
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:81200
Deposited By: Tony Diaz
Deposited On:06 Sep 2017 21:31
Last Modified:15 Nov 2021 19:41

Repository Staff Only: item control page