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Decisionmaking organizations with acyclical information structures

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2 Author(s)
Levis, A.H. ; Lab. for Information & Decision Systems, MIT, Cambridge, MA, USA ; Boettcher, K.L.

An analytical model of a team of well-trained human decisionmakers executing a well-defined decisionmaking task is presented. Each team member is described by a two-stage model consisting of a situation assessment (SA) and a response selection (RS) stage. An information theoretic framework is used, in which bounded rationality is modelled as a constraint on the total rate of internal processing by each decisionmaker. Optimising and satisfying strategies are derived and their properties analysed in terms of organisational performance and individual workload. The results are applied to the analysis of two three-person organisational designs.

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Systems, Man and Cybernetics, IEEE Transactions on  (Volume:SMC-13 ,  Issue: 3 )