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Optimal Information Transmission in Organizations: Search and Congestion

Optimal information transmission in organizations: Search and congestion
Authors: Arenas, A.; Cabrales, A.; Danon, L.; Diaz-Guilera, A.; Guimera, R.; Vega-Redondo, F.;

Optimal Information Transmission in Organizations: Search and Congestion

Abstract

We propose a stylized model of a problem-solving organization whose internal communication structure is given by a fixed network. Problems arrive randomly anywhere in this network and must find their way to their respective specialized solvers by relying on local information alone. The organization handles multiple problems simultaneously. For this reason, the process may be subject to congestion. We provide a characterization of the threshold of collapse of the network and of the stock of floating problems (or average delay) that prevails below that threshold. We build upon this characterization to address a design problem: the determination of what kind of network architecture optimizes performance for any given problem arrival rate. We conclude that, for low arrival rates, the optimal network is very polarized (i.e. star-like or centralized), whereas it is largely homogenous (or decentralized) for high arrival rates. These observations are in line with a common transformation experienced by information-intensive organizations as their work flow has risen in recent years.

Countries
United Kingdom, United Kingdom, Spain, United States, Italy
Keywords

L23, Transformations, Design, 330, Performance, design, L22, Economía, organization design, Architecture, Deterministic network models in operations research, Microeconomics, Information transmission, Theory of organizations, manpower planning in operations research, Networks, information transmission, search, organization design, HB Economic Theory, organizations, search, Economics of information, Organizations, 97, ddc:330, Organization design, congestion, Search, information transmission, Informationsmanagement, Communications, optimal information; networks, 004, Organisationsforschung, D83, networks, Congestion, Networks, Information transmission, Search, Organization design, D23, D24, Networks, D20, jel: jel:D83, jel: jel:D20, jel: jel:D24, jel: jel:L22, jel: jel:L23

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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