Organizations can localize and minimize information demands just as markets do, by decentralizing decisions. Matters of fact can be determined wherever the most skill and information is located to determine them, and they can then be communicated to “collecting points” where all the facts relevant to an issue can be put together and a decision reached. We can think of a decision as produced by executing a large computer program, each subroutine having its special tasks and relying on local sources of information.
