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Coordination in centralized and decentralized systems
Published in International Microsimulation Association
Volume: 10
Issue: 2
Pages: 86 - 102
We study a simple coordination problem to understand the difference between centralized and decentralized economic systems. The decentralized system is more robust than the centralized system to communication errors. But the centralized system takes less time than the decentralized system to create coordination among constituent parts. Decentralization is preferable when the constituent parts are more likely to make communication errors, when there is little urgency, and when there is need to prevent system-collapse.
About the journal
JournalInternational Journal of Microsimulation
PublisherInternational Microsimulation Association
Open AccessNo