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Economic Modeling Triggers More Efficient Planning: An Experimental Justification

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Author Info

  • Jean Ponssard

    ()

  • Olivier Saulpic

    ()

Abstract

Consider a firm as an organization that needs to efficiently coordinate several specialized departments in an uncertain environment. Decision making involves collective planning sessions and decentralized operational processes. In this setting this paper explores the role of economic modeling through an experimental game. Results support the idea that economic modeling favors higher performance. Economic modeling facilitates the emergence of common knowledge and the decomposition of a group decision problem into individual decision problems that are meaningfully interrelated. Copyright Springer 2005

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File URL: http://hdl.handle.net/10.1007/s11238-005-6593-2
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Bibliographic Info

Article provided by Springer in its journal Theory and Decision.

Volume (Year): 58 (2005)
Issue (Month): 3 (05)
Pages: 239-282

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Handle: RePEc:kap:theord:v:58:y:2005:i:3:p:239-282

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Web page: http://www.springerlink.com/link.asp?id=100341

Related research

Keywords: economic modeling; interactive rationality; planning; organizational learning; D83; L2; M21;

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Cited by:
  1. Berland, Nicolas & Ponssard, Jean-Pierre & Saulpic, Olivier, 2005. "Une typologie des systèmes de contrôle inspirée du cadre théorique de Simons," Economics Papers from University Paris Dauphine 123456789/3053, Paris Dauphine University.
  2. Nicolas Berland & Jean-Pierre Ponssard & Olivier Saulpic, 2006. "Recurrent Attempts to Renovate Management ControlRevisited through a Simons' Perspective," Working Papers hal-00243033, HAL.
  3. Berland, Nicolas & Ponssard, Jean-Pierre & Saulpic, Olivier, 2005. "Recurrent Attempts to Renovate Management Control Revisited through a Simons' Perspective," Economics Papers from University Paris Dauphine 123456789/3143, Paris Dauphine University.

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