Research Report: Intrafirm Resource Allocation with Asymmetric Information and Negative Externalities.

Author List: Nadiminti, Raja; Mukhopadhyay, Tridas; Kriebel, Charles H.;

Information Systems Research, 2002, Volume 13, Issue 4, Page 428-434.

We examine the intrafirm resource allocation problem with the following characteristics. The resource exhibits negative externalities, and the benefit of using the resource is known only to the user department and not to top management or other user departments. In addition, the consumption of the resource depends upon the choice of the mechanism for allocating the resource. For this problem, we derive a two-stage mechanism, and show that this proposed mechanism leads to optimal allocation.

Keywords: Asymmetric Information; Negative Externalities; Resource Allocation

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#214	0.315	resource resources allocation chargeback manager effectiveness problem firms case gap allocating diverse dependence just bridge cooperative criticality acquisition duplication extent
#112	0.159	services service network effects optimal online pricing strategies model provider provide externalities providing base providers fee complementary demand offer derive
#231	0.140	information management data processing systems corporate article communications organization control distributed department capacity departments major user hardware cost applications expansion
#166	0.115	negative positive effect findings results effects blog suggest role blogs posts examined period relationship employees research employee bloggers reveal companies
#208	0.061	feedback mechanisms mechanism ratings efficiency role effective study economic design potential economics discuss profile recent component granularity turn compared using