Why Hierarchical Bureaucracies Don’t Scale With Linear Cost

This afternoon in comments at another blog I gave a quick hipshot explanation to somebody’s question about why small systems don’t always scale with linear cost, i.e. if you double the size of the system, the cost could more than double, if you quadruple it the cost could be more than twice the cost of doubling it, and so on. I realized belatedly that my explanation was absolutely awful.

This is a discussion that has direct relevancy to the subject of healthcare reform so I guess I’ll exert a little more effort to the explanation. I’m afraid it’ll require me to draw diagrams and I’m no artist.

More anon.

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