An experimental study of centralized information in a financial organization

Herbert Moskowitz; John Keith Murnighan

doi:10.1016/0305-0483(75)90123-1

An experimental study of centralized information in a financial organization

Herbert Moskowitz^*, John Keith Murnighan

^*Corresponding author for this work

Management and Organizations

Research output: Contribution to journal › Article › peer-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 language	English (US)
Pages (from-to)	229-233
Number of pages	5
Journal	Omega
Volume	3
Issue number	2
DOIs	https://doi.org/10.1016/0305-0483(75)90123-1
State	Published - Jan 1 1975

ASJC Scopus subject areas

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

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10.1016/0305-0483(75)90123-1

Cite this

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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.",

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An experimental study of centralized information in a financial organization

Abstract

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