A population-dynamics model of a general informationprocessing system is introduced. This system is functionally coupled to two environments, one internal and one external, which comprise the environage. GBdel's incompleteness theorem provides a basis for the hypothesis that a single phenomenon acco
Hierarchical reporting, aggregation, and information cascades
β Scribed by Anil Arya; Jonathan Glover; Brian Mittendorf
- Publisher
- John Wiley and Sons
- Year
- 2006
- Tongue
- English
- Weight
- 119 KB
- Volume
- 27
- Category
- Article
- ISSN
- 0143-6570
- DOI
- 10.1002/mde.1267
No coin nor oath required. For personal study only.
β¦ Synopsis
Abstract
Aggregation is commonly associated with loss of information. In contrast, this paper shows that aggregation can actually enhance information downβtheβroad by deterring information cascades. In particular, when hierarchical tiers forward only aggregate recommendations rather than nittyβgritty details, it increases the uncertainty faced by subsequent tiers. This makes individuals at higher levels more willing to rely on and convey their own views rather than simply rubber stamping suggestions from lower levels. Copyright Β© 2006 John Wiley & Sons, Ltd.
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