# kaal:claim:3808852-013

**Claim.** 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.

**Type.** mechanism  **Support.** argued

**Holds when.**

- applies to internet platform companies such as eBay and Amazon

**Source quote.**

> 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.

**From.** Wulf A. Kaal, *Decentralization and Feedback Effects* (2021), III. Organizational Decentralization, page 11

**Cite as.** Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852

**Verify.** sha256 of source PDF `31e91158fdeefebc2f0be54ebf89751f7cdd4c89ecea932888f5ba9be6b1caba` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Decentralization%20and%20Feedback%20Effects.pdf

**Topics.** institutional-design

**Keywords.** hybrid-organization, platform-companies, user-ratings, consumer-protection

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