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

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  • Francesco Feri

    ()
    (Department of Public Finance, University of Innsbruck)

  • Bernd Irlenbusch

    ()
    (London School of Economics & Political Science - Department of Management; Institute for the Study of Labor (IZA))

  • Matthias Sutter

    ()
    (University of Innsbruck - Department of Public Economics; University of Gothenburg - Department of Economics)

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 a series of coordination experiments with a total of 1,101 participants. We find that teams of three subjects each 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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Paper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2009_14.

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Date of creation: Apr 2009
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Handle: RePEc:mpg:wpaper:2009_14

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Cited by:
  1. Wieland Mueller & Fangfang Tan, 2011. "Who Acts More Like a Game Theorist? Group and Individual Play in a Sequential Market Game and the Effect of the Time Horizon," Working Papers who_acts_more_like_a_game, Max Planck Institute for Tax Law and Public Finance.
  2. 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.
  3. Cason, Timothy N. & Sheremeta, Roman M. & Zhang, Jingjing, 2012. "Communication and efficiency in competitive coordination games," Games and Economic Behavior, Elsevier, vol. 76(1), pages 26-43.
  4. 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.
  5. Fahr, René & Irlenbusch, Bernd, 2011. "Who follows the crowd—Groups or individuals?," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 200-209.
  6. repec:sip:wpaper:12-026 is not listed on IDEAS
  7. 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.
  8. 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.
  9. 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).
  10. 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.

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