5. S­U­P­E­R­O­R­G­A­N­I­Z­A­T­I­O­N­S­

We now turn to the analysis of decision making in superorganizations. The superorganizations that we will study in this section consist of a central organization coordinating one or more of their member firms’ activities (output, prices, quality, wages, working conditions). At one extreme, they may exercise hierarchic power over these constituents; at the other, they may act as an association in no way limiting their autonomy, except insofar as members may have bound themselves to certain actions or policies.

Macro-coordination in a superorganization is achieved when aggregate constraints are satisfied (e.g. the aggregate amount of a good supplied by all the firms in the superorganization equals the aggregate ...

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