- A system in which parts of the system follow detailed rules fixed by a “higher” system are called bureaucratic.
- Bureaucracy is the only method available to steer affairs for which no market price exists.
- Two ways to make decisions
- Hierarchical/Top-down/centralised/buereaucratic
- Networked/Bottom-up/decentralised/profit
- On a systems, level, emergence can allow to explain the system on a higher level, even if decisions are guided by profit maximisation at lower level. This doesn’t mean that a system is bureaucratic.