A Game-Theoretic Approach to Bureaucratic Behavior
Bureaucracy is one of the most pervasive forms of organization for modern society. Such organizations, characterized by large size, a hierarchical structure, and few if any concrete measures of performance, exist in government, industry, universities, nonprofit organizations, and other sectors of modern society.† In the U.S. federal government there are, in fact, many “layers” of bureaucracy. Working from the inner to the outer layers, any individual office in an agency is a bureau, as are the agencies themselves and the cabinet department of which they are part. In industry the different divisions or branches of a corporation can be considered bureaus. In universities the departments can be treated as bureaus.
KeywordsPublic Good Median Voter Private Good Budgetary Allocation Allocation Function
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