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Hierarchical reporting, aggregation, and information cascades

✍ 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

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✦ Synopsis


Abstract

Aggregation is commonly associated with loss of information. In contrast, this paper shows that aggregation can actually enhance information down‐the‐road by deterring information cascades. In particular, when hierarchical tiers forward only aggregate recommendations rather than nitty‐gritty 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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