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

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  • Feri, Francesco

    ()
    (University of Innsbruck)

  • Irlenbusch, Bernd

    ()
    (University of Cologne)

  • Sutter, Matthias

    ()
    (European University Institute)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3741.

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Length: 45 pages
Date of creation: Oct 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3741

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Keywords: coordination games; individual decision-making; experience-weighted attraction learning; team decision-making; experiment;

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Cited by:
  1. Müller, Wieland & Tan, Fangfang, 2013. "Who acts more like a game theorist? Group and individual play in a sequential market game and the effect of the time horizon," Games and Economic Behavior, Elsevier, vol. 82(C), pages 658-674.
  2. Sutter, Matthias & Czermak, Simon & Feri, Francesco, 2010. "Strategic Sophistication of Individuals and Teams in Experimental Normal-Form Games," IZA Discussion Papers 4732, Institute for the Study of Labor (IZA).
  3. Bizer, Kilian & Meub, Lukas & Proeger, Till & Spiwoks, Markus, 2014. "Strategic coordination in forecasting: An experimental study," Center for European, Governance and Economic Development Research Discussion Papers 195, University of Goettingen, Department of Economics.
  4. David Cooper & John Lightle, 2013. "The gift of advice: communication in a bilateral gift exchange game," Experimental Economics, Springer, vol. 16(4), pages 443-477, December.
  5. repec:sip:wpaper:12-026 is not listed on IDEAS
  6. Sutter, Matthias & Czermak, Simon & Feri, Francesco, 2013. "Strategic sophistication of individuals and teams. Experimental evidence," European Economic Review, Elsevier, vol. 64(C), pages 395-410.
  7. Timothy N. Cason & Roman M. Sheremeta & Jingjing Zhang, 2010. "Communication and efficiency in competitive coordination games," IEW - Working Papers 505, Institute for Empirical Research in Economics - University of Zurich, revised Feb 2012.
  8. Fahr, René & Irlenbusch, Bernd, 2011. "Who follows the crowd—Groups or individuals?," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 200-209.
  9. Alessia Isopi & Daniele Nosenzo & Chris Starmer, 2011. "Does consultation improve decision making?," Discussion Papers 2011-08, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  10. Martin Angerer & Juergen Huber & Martin Shubik & Shyam Sunder, 2010. "An economy with personal currency: theory and experimental evidence," Annals of Finance, Springer, vol. 6(4), pages 475-509, October.

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