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 routine spartially solve the teamâ€™s coordination problem by synchronizing the teamâ€™s search efforts and prove to be resilient to changes in the environment by being expost equilibria, to agents having only a coarse understanding of other agentsâ€™ strategies by being fully cursed, and to natural forms of agentsâ€™ overcon?dence. The price of this resilience is that optimal routines are frequently not optimal equilibria.
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Bibliographic InfoPaper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 355.
Date of creation: Jan 2011
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Other versions of this item:
- Andreas Blume & April M. Franco & Paul Heidhues, 2011. "Dynamic coordination via organizational routines," ESMT Research Working Papers ESMT-11-10, ESMT European School of Management and Technology.
- Andreas Blume, 2011. "Dynamic Coordination Via Organizational Routines," Working Papers 439, University of Pittsburgh, Department of Economics, revised Jan 2011.
- 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
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