Here is a paper on organizational diseconomies of scale (hierarchies and chains of principal agent relationships). This is not required reading, just for those who are interested:
1530-9134/asset/cover.gif?v=1&s=e1e2b472b9d585874d33a26ab12ffb6664c747e1 "Journal of Economics & Management Strategy")
Organizational Diseconomies of scale - McAfee - 2005 - Journal of Economics & Management Strategy - Wiley Online Library:'via Blog this'
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