Q B (x,y) 4(1 x 2 )y 2(1 x 2 ) p 2 r 2 1 . (12) For our purposes, Q B(x,y) < 0 is the same as Q B(x,y) failing to exist. Henceforth, we will use the phrase Q B(x,y) < 0 to mean either situation. It is clear from (12) that Q B(x,y) < 0 if <strong>and</strong> only if 2(1-x 2 ) 1 p 2 r 2 . It is also easy to check that, since p > r, Q B(r,p) > 0. Also, if Q B(x,y) > 0, J Q B(x,y) if <strong>and</strong> only if 2(1 p 2 )(1 r 2 ) (1 pr) 2 (1 pr). (13) Note also that K xy(Q) <strong>and</strong> D(Q) are downward sloping in Q <strong>and</strong> K xy(Q) is steeper than D(Q). Moreover, K pr(Q) is steeper than K rp(Q) <strong>and</strong> D(Q) = G at Q = 0. Consequently, K xy(Q) intersects D(Q) exactly once at Q K (x,y) 2(x y) 4x 2y p 2r 2s x 2 (2 y 2 . (14) ) Q K(p,r) > 0, but Q K(r,p) may be positive, negative or zero. Also, D(Q) intersects 4p exactly once at H 1 (Q) Q 4p s H 1 (Q) max $A(Q),B pr (Q),B rp (Q)�; L 1 (Q) min $A(Q),C pr (Q),C rp (Q)�; H 2 (Q) max $D(Q),K pr (Q),K rp (Q),4p�; 2(p r) p 2 r 2 . (15) Again, Q 4p can be positive, negative or zero depending on whether G > 4p, G < 4p, or G = 4p. Let L 2 (Q) min $D(Q),C pr (Q),C rp (Q),E(Q)�. For Q < 2r, B pr(Q) < 0 < A(Q), <strong>and</strong>, for Q < 2p, B rp(Q) < 0 < A(Q). Therefore, A(Q), for Q
Similarly, for Q < 2r+r 2 s, K pr(Q) > 4p, for Q 2r+r 2 s, K pr(Q) 4p, <strong>and</strong> for Q 2p+p 2 s, K rp(Q) 4r < 4p. Therefore, H 2 (Q) Consequently, Table 2 can be rewritten as <strong>and</strong> max $D(Q),K pr (Q),K rp (Q)�, for Q
- Page 1 and 2: ORGANIZATION DESIGN by Milton Harri
- Page 3 and 4: eports both to the Project A divisi
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- Page 7 and 8: paid if the manager is available to
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- Page 17 and 18: value of the R-hierarchy (net of fi
- Page 19 and 20: it is still optimal to use the CEO
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- Page 23 and 24: 5 Comparative Statics For Q Optimal
- Page 25 and 26: Figure 5: Optimal Organization Desi
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- Page 29 and 30: appendix. Proposition 4. Increases
- Page 31 and 32: divisional hierarchy. Next we exami
- Page 33 and 34: References Baron, David P. and Davi
- Page 35: Recall A(Q) Q(1 p 2 r 2 ) D G Q, B
- Page 39 and 40: is impossible. Therefore, Q B(p,r)
- Page 41 and 42: Case 2: G > Q B(r,p) J and Figure 6
- Page 43 and 44: and H(Q) L(Q) A(Q), for Q Q B (r,p)
- Page 45 and 46: Case 6: J > Q B(r,p), J > G > Q B(p
- Page 47 and 48: L(Q) A(Q), for Q Q B (p,r), C pr (Q
- Page 49: for X = M, CP, CR, and CF implies t