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Efficiency Gains from Team-Based Coordination ? Large-Scale Experimental Evidence

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  • Francesco Feri

    ()

  • Bernd Irlenbusch

    ()

  • Matthias Sutter

    ()

Abstract

The need for efficient coordination is ubiquitous in organizations and industries. The literature on the determinants of efficient coordination has focused on individual decision-making so far. In reality, however, teams often have to coordinate with other teams. We present an experiment with 825 participants, using six different coordination games, where either individuals or teams interact with each other. We find that teams coordinate much more efficiently than individuals. This finding adds one important cornerstone to the recent literature on the conditions for successful coordination. We explain the differences between individuals and teams using the experience weighted attraction learning model.

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Bibliographic Info

Paper provided by Faculty of Economics and Statistics, University of Innsbruck in its series Working Papers with number 2008-22.

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Length: 48
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:inn:wpaper:2008-22

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Keywords: Coordination games; Individual decision-making; Team decision-making; Experience-weighted attraction learning; Experiment;

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Cited by:
  1. Martin Angerer & Juergen Huber & Martin Shubik & Shyam Sunder, 2007. "An Economy with Personal Currency: Theory and Experimental Evidence," Cowles Foundation Discussion Papers 1622, Cowles Foundation for Research in Economics, Yale University, revised Mar 2010.
  2. Matthias Sutter & Simon Czermak & Francesco Feri, 2010. "Strategic sophistication of individuals and teams in experimental normal-form games," Working Papers 2010-02, Faculty of Economics and Statistics, University of Innsbruck.

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