THE TIME AND BUDGET CONSTRAINTS OF THE FIRM

This short paper surveys some recent research on the internal organiza tion of firms, with an emphasis on task allocation and synchronization . It focuses on an organization facing no incentive problems but time constraints and costs of communication. It highlights two motives for communication: concern for delay and concern for throughput. It also c onsiders the interaction between the time and budget constraints of th e firm and its implication for organization design.