On the Role of Incentives in Evolutionary Approaches to Organizational Design

This paper introduces a model of stylized organization that is comprised several departments autonomously allocate tasks. To do so, the either take short-sighted decisions immediately maximize their utility or long-sighted aim at minimizing interdependencies between The guides departments' behavior by an individualistic, balanced, altruistic linear incentive scheme. Even if tasks are perfectly decomposable, schemes preferred over individualistic since they substantially increase organization's performance. Interestingly, effective, appear favorable not only performance in short run but also result significantly higher performances long run.