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Are Experienced Managers Experts at Overcoming Coordination Failure?

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  • Cooper David J

    ()
    (Case Western Reserve University)

Abstract

This paper studies experiments set in a corporate environment where a manager attempts to overcome a history of coordination failure by employees using either financial incentives or communication. I compare the choices of subject managers drawn from a standard undergraduate population with subject managers drawn from the executive MBA (EMBA) program at Case's Weatherhead School of Management. The EMBA subjects are a group of experienced, successful managers; all of the EMBA subjects have at least ten years of work experience, including at least five years in a supervisory role, and have average annual earnings in excess of $120,000. The EMBA subject managers are able to overcome a history of coordination failure significantly faster than the undergraduate subject managers. This superior performance is driven neither by differences in the financial incentives offered to the employees nor by use of an inherently different communications strategy. Instead, EMBA subject managers are significantly more likely to use the same "good" communication strategy as is identified for undergraduate subject managers through systematic coding of manager’s messages to employees.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 5 (2006)
Issue (Month): 2 (May)
Pages: 1-52

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Handle: RePEc:bpj:bejeap:v:advances.6:y:2006:i:2:n:6

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Cited by:
  1. Ahn, T.K. & Ostrom, Elinor & Walker, James, 2010. "A common-pool resource experiment with postgraduate subjects from 41 countries," Ecological Economics, Elsevier, Elsevier, vol. 69(12), pages 2624-2633, October.
  2. John A. List, 2007. "Field Experiments: A Bridge Between Lab and Naturally-Occurring Data," NBER Working Papers 12992, National Bureau of Economic Research, Inc.
  3. Waichman, Israel & Requate, Till & Siang, Ch'ng Kean, 2008. "Managers and Students Playing Cournot: Experimental Evidence from Malaysia," Economics Working Papers 2008,19, Christian-Albrechts-University of Kiel, Department of Economics.
  4. Waichman, Israel & Requate, Till & Siang, Ch'ng Kean, 2010. "Pre-play communication in Cournot competition: An experiment with students and managers," Economics Working Papers 2010,09, Christian-Albrechts-University of Kiel, Department of Economics.
  5. Stefania Bortolotti & Giovanna Devetag & Andreas Ortmann, 2009. "Exploring the effects of real effort in a weak-link experiment," CEEL Working Papers, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia 0901, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
  6. Ahn, T.K. & Ostrom, Elinor & Walker, James, 2011. "Reprint of: A common-pool resource experiment with postgraduate subjects from 41 countries," Ecological Economics, Elsevier, Elsevier, vol. 70(9), pages 1580-1589, July.
  7. Depositario, Dinah Pura T. & Nayga Jr., Rodolfo M. & Wu, Ximing & Laude, Tiffany P., 2009. "Should students be used as subjects in experimental auctions?," Economics Letters, Elsevier, Elsevier, vol. 102(2), pages 122-124, February.

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