@article{Herzog2015,
  author    = {Herzog, Bodo},
  title     = {Applied mathematical theory of governance : impact of group size to governance},
  journal   = {Theoretical mathematics and applications},
  volume    = {5},
  number    = {2},
  issn      = {1792-9687},
  url       = {http://www.scienpress.com/Upload/TMA/Vol\%205_2_4.pdf},
  institution = {ESB Business School},
  pages     = {71 -- 87},
  year      = {2015},
  abstract  = {This paper analyzes governance mechanisms for different group sizes. The European sovereign debt crisis has demonstrated the need of efficient governance for different group sizes. I find that self-governance only works for sufficiently homogenous and small neighbourhoods. Second, as long as the union expands, the effect of credible self-governance decreases. Third, spill-over effects amplify the size effect. Fourth, I show that sufficiently large monetary unions, are better off with costly but external governance or a free market mechanism. Finally, intermediate-size unions are most difficult to govern efficiently.},
  language  = {en}
}