- regulation cost makes agency size and organization diversity sublinear importance of aggregating knowledge - aggregated property of organization change over the size of the organization - scaling analysis: y = ax^beta - energy consumption (space-filling, branching, constant capiliary, e required to distribute resource is minimized) when we add a layer, new opportunities emerge Hebb's law, Herb simon's ceo's salary (1950) [[_ref/Yang22_Diversity_scaling_slides.pdf]] [[ref/Yang22_FuncDiv.pdf]]