An experimental study of centralized information in a financial organization

Herbert Moskowitz*, John Keith Murnighan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

An experiment involving a simulated financial lending organization was used to compare subjects' decisions regarding the degree to which the organization should be informationally centralized, with that of an optimal decision rule based on a normative model. Typically, subjects overdecentralized the information structure to process small loans, and overcentralized the information structure to process large loans. Both the theoretical and practical implications of these results are discussed.

Original languageEnglish (US)
Pages (from-to)229-233
Number of pages5
JournalOmega
Volume3
Issue number2
DOIs
StatePublished - Jan 1 1975

ASJC Scopus subject areas

  • Strategy and Management
  • Information Systems and Management
  • Management Science and Operations Research

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