Behavioral Externalities in Decentralized Organizations

Published Online:https://doi.org/10.1287/mnsc.17.10.B649

A number of analytic formulations of resource allocation activities in decentralized organizations have considered the effects of economic or technological externalities but most treatments have neglected concomitant organizational or behavioral effects. This paper introduces the concept of a behavioral externality and relates it to the decision-making process in decentralized organizations. Alternative analytic formulations of behavioral externalities are examined, and a numerical example is presented.

INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.