Dynamic coordination via organizational routines
AbstractWe investigate dynamic coordination among members of a problem-solving team who receive private signals about which of their actions are required for a (static) coordinated solution and who have repeated opportunities to explore different action combinations. In this environment ordinal equilibria, in which agents condition only on how their signals rank their actions and not on signal strength, lead to simple patterns of behavior that have a natural interpretation as routines. These routines partially solve the team's coordination problem by synchronizing the team's search efforts and prove to be resilient to changes in the environment by being ex post equilibria, to agents having only a coarse understanding of other agents' strategies by being fully cursed, and to natural forms of agents' overconfidence. The price of this resilience is that optimal routines are frequently suboptimal equilibria.
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.
Bibliographic InfoPaper provided by ESMT European School of Management and Technology in its series ESMT Research Working Papers with number ESMT-11-10.
Length: 58 pages
Date of creation: 06 Sep 2011
Date of revision:
coordination games; organizational routines; decentralized information; ex-post equilibria; cursed equilibria; multi-agent learning; rational learning;
Other versions of this item:
- Andreas Blume, 2011. "Dynamic Coordination Via Organizational Routines," Working Papers 439, University of Pittsburgh, Department of Economics, revised Jan 2011.
- Blume, Andreas & Franco, April Mitchell & Heidhues, Paul, 2011. "Dynamic Coordination via Organizational Routines," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 355, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-16 (All new papers)
- NEP-CBE-2011-09-16 (Cognitive & Behavioural Economics)
- NEP-CTA-2011-09-16 (Contract Theory & Applications)
- NEP-GTH-2011-09-16 (Game Theory)
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.:
- Blume, Andreas & Heidhues, Paul, 2006.
"Private monitoring in auctions,"
Journal of Economic Theory,
Elsevier, vol. 131(1), pages 179-211, November.
- Andreas Blume & John Duffy & April M. Franco, 2009.
"Decentralized Organizational Learning: An Experimental Investigation,"
American Economic Review,
American Economic Association, vol. 99(4), pages 1178-1205, September.
- John Duffy & Andreas Blume & April Franco, 2007. "Decentralized Organizational Learning: An Experimental Investigation," Working Papers 310, University of Pittsburgh, Department of Economics, revised Jul 2008.
- Andreas Blume & John Duffy & April Mitchell Franco, 2008. "Decentralized Organizational Learning: An Experimental Investigation," Working Papers 382, University of Pittsburgh, Department of Economics, revised May 2009.
- Jacques Crémer & Luis Garicano & Andrea Prat, 2007.
"Language and the Theory of the Firm,"
The Quarterly Journal of Economics,
MIT Press, vol. 122(1), pages 373-407, 02.
- GOSSNER, Olivier & VIEILLE, Nicolas, 1998.
"Strategic learning in games with symmetric information,"
CORE Discussion Papers
1998023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gossner, Olivier & Vieille, Nicolas, 2003. "Strategic learning in games with symmetric information," Games and Economic Behavior, Elsevier, vol. 42(1), pages 25-47, January.
- O. Gossner & N. Vieille, 2000. "Strategic Learning in Games with Symmetric Information," THEMA Working Papers 2000-27, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Andreas Blume & John Duffy, 2004. "Organizational Learning: An Experimental Investigation," 2004 Meeting Papers 617, Society for Economic Dynamics.
- Sylvain Chassang, 2010. "Building Routines: Learning, Cooperation, and the Dynamics of Incomplete Relational Contracts," American Economic Review, American Economic Association, vol. 100(1), pages 448-65, March.
- David A. Miller, 2012. "Robust Collusion with Private Information," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 778-811.
- Andreas Blume & April Franco, 2002. "Learning from failure," Staff Report 299, Federal Reserve Bank of Minneapolis.
- Thomas Wiseman, 2005. "A Partial Folk Theorem for Games with Unknown Payoff Distributions," Econometrica, Econometric Society, vol. 73(2), pages 629-645, 03.
- Blume, Andreas & Franco, April Mitchell, 2007. "Decentralized learning from failure," Journal of Economic Theory, Elsevier, vol. 133(1), pages 504-523, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ESMT Faculty Publications).
If references are entirely missing, you can add them using this form.