Hybrid organizations combining centralized structure and profit optimization with bottom-up decentralization in the form of customer reviews generate significant success but also create tensions, because users who trust each other through ratings still demand consumer safeguards that require command-and-control structures.
Source quote, verbatim
While people are willing to trust others by way of user ratings, they also require safeguards for consumers that typically require command-and-control centralized structures.
Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852
Holds when
applies to internet platform companies such as eBay and Amazon
Classification
mechanismsupport: arguedinstitutional-design
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