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Table 2 The three ideal organizational forms: solutions to the universal problems of organizing

From: Collaborative organizational forms: on communities, crowds, and new hybrids

   Market Hierarchy Community
Task division Task division Scope of transacted good typically set by buyer, division of tasks to provide good by supplier Managerial decision (authority), centralized Distributed identification and division of tasks by general members
Task allocation Assignment Bidding/price, decentralized in dyads (can be facilitated by centralized platforms) Managerial decision (authority), centralized Self-assignment, decentralized (can be facilitated by centralized platforms)
Resource allocation Price mechanism Managerial decision (authority) Actor-based mobilization of shared resources in commons
Quality/task approval by Customer Manager Peer
Reward distribution Incentives Compensation for outputs via price mechanism (strong) Typically compensation for inputs (e.g., time) (weak) Benefits from use of complementary, non-rival goods; other intrinsic and extrinsic rewards (weak)
Information provision Information flow Via networks, information intermediaries (private and public) Directed, primarily vertical Transparent, via networks and commons
Information aggregation via Price mechanism, market intermediaries and information aggregators Hierarchical channels Commons, collective problem, and solution representations