AbstractThis paper is concerned with communication within a team of players trying to coordinate in response to information dispersed among them. The problem is nontrivial because they cannot communicate all information instantaneously but have to send longer or shorter sequences of messages, using coarse codes. We focus on the design of these codes and show that members may gain compatibility advantages by using identical codes and that this can support the existence of several, more or less efficient, symmetric equilibria. Asymmetric equilibria may exist only if coordination across different sets of members is of sufficiently different importance. The results are consistent with the stylized fact that firms differ even within industries and that coordination between divisions is harder than coordination inside divisions. Copyright 2004 Blackwell Publishing, 350 Main Street, Malden, MA 02148, USA, and 9600 Garsington Road, Oxford OX4 2DQ, UK..
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.
Volume (Year): 13 (2004)
Issue (Month): 3 (09)
Contact details of provider:
Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/
Other versions of this item:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Duncan Simester & Marc Knez, 2002. "Direct and Indirect Bargaining Costs and the Scope of the Firm," The Journal of Business, University of Chicago Press, vol. 75(2), pages 283-304, April.
- Farrell, Joseph, 1986.
"Meaning and Credibility in Cheap-Talk Games,"
Department of Economics, Working Paper Series
qt4968n3fz, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Ariel Rubinstein, 2000.
"Economics and Language,"
Online economics textbooks,
SUNY-Oswego, Department of Economics, number lang1, January.
- Ariel Rubinstein, 2005. "Economics and Language," Levine's Bibliography 666156000000000654, UCLA Department of Economics.
- A. Rubinstein, 1999. "Economics and Language," Princeton Economic Theory Papers 00s6, Economics Department, Princeton University.
- Rubinstein, A., 1998. "Economics and Language," Papers 14-98, Tel Aviv.
- Garey Ramey & Joel Watson, 1999.
"Conditioning Institutions and Renegotiation,"
Cowles Foundation Discussion Papers
1225, Cowles Foundation for Research in Economics, Yale University.
- Ramey, Garey & Watson, Joel, 2000. "Conditioning Institutions and Renegotiation," University of California at San Diego, Economics Working Paper Series qt5zd216tw, Department of Economics, UC San Diego.
- Bolton, Patrick & Dewatripont, Mathias, 1994.
"The Firm as a Communication Network,"
The Quarterly Journal of Economics,
MIT Press, vol. 109(4), pages 809-39, November.
- Mathias Dewatripont & Patrick Bolton, 1994. "The firm as a communication network," ULB Institutional Repository 2013/9595, ULB -- Universite Libre de Bruxelles.
- Mathias Dewatripont & Patrick Bolton, 2004. "The firm as a communication network," ULB Institutional Repository 2013/9599, ULB -- Universite Libre de Bruxelles.
- Mathias Dewatripont & Patrick Bolton, 1996. "The firm as a communication network," ULB Institutional Repository 2013/9597, ULB -- Universite Libre de Bruxelles.
- Rabin, Matthew & Sobel, Joel, 1993.
"Deviations, Dynamics and Equilibrium Refinements,"
Department of Economics, Working Paper Series
qt40s882v6, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Kofman, Fred & Ratliff, James D., 1996. "Monolog vs. dialog in costly bilateral communication," Journal of Economic Behavior & Organization, Elsevier, vol. 31(3), pages 431-443, December.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- Timothy Van Zandt & Roy Radner, 1998. "Real-Time Decentralized Information Processing and Returns to Scale," Discussion Papers 1233, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- anonymous, 1978. "Communication," Management Science, INFORMS, vol. 24(9), pages 919-919, May.
- Crawford, Vincent, 1998. "A Survey of Experiments on Communication via Cheap Talk," Journal of Economic Theory, Elsevier, vol. 78(2), pages 286-298, February.
- Dow, James, 1991. "Search Decisions with Limited Memory," Review of Economic Studies, Wiley Blackwell, vol. 58(1), pages 1-14, January.
- Wernerfelt, Birger, 1997. "On the Nature and Scope of the Firm: An Adjustment-Cost Theory," The Journal of Business, University of Chicago Press, vol. 70(4), pages 489-514, October.
- Rubinstein, Ariel, 1996. "Why Are Certain Properties of Binary Relations Relatively More Common in Natural Language?," Econometrica, Econometric Society, vol. 64(2), pages 343-55, March.
- Meyer, Margaret A, 1991. "Learning from Coarse Information: Biased Contests and Career Profiles," Review of Economic Studies, Wiley Blackwell, vol. 58(1), pages 15-41, January.
- V. Crawford & J. Sobel, 2010.
"Strategic Information Transmission,"
Levine's Working Paper Archive
544, David K. Levine.
- Marco LiCalzi & Nadia Maagli, 2013. "Bargaining over a common conceptual space," Working Papers 30, Department of Management, Università Ca' Foscari Venezia.
- Jacques Cremer & Luis Garicano & Andrea Prat, 2006.
"Language and the Theory of the Firm,"
784828000000000373, UCLA Department of Economics.
- Blume, Andreas, 2000.
"Coordination and Learning with a Partial Language,"
Journal of Economic Theory,
Elsevier, vol. 95(1), pages 1-36, November.
- Andreas Blume, 1998. "Coordination and Learning with a Partial Language," CIG Working Papers FS IV 98-11, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Blume, Andreas, 1998. "Coordination and Learning with a Partial Language," Working Papers 98-11, University of Iowa, Department of Economics.
- Crémer, Jacques & Garicano, Luis & Prat, Andrea, 2004.
"Codes in Organizations,"
CEPR Discussion Papers
4205, C.E.P.R. Discussion Papers.
- Hirokazu Takizawa, 2003. "Coordination Costs and the Optimal Partition of a Product Design," Discussion papers 03014, Research Institute of Economy, Trade and Industry (RIETI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.