IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v96y2006i1p114-126.html
   My bibliography  Save this article

Managing Growth to Achieve Efficient Coordination in Large Groups

Author

Listed:
  • Roberto A. Weber

Abstract

Previous experiments using the minimum-effort coordination game reveal a striking regularity—large groups never coordinate efficiently. Given the frequency with which large real-world groups, such as firms, face similarly difficult coordination problems, this poses an important question: Why do we observe large, successfully coordinated groups in the real world when they are so difficult to create in the laboratory? This paper presents one reason. The experiments show that, even though efficient coordination does not occur in groups that start off large, efficiently coordinated large groups can be "grown." By starting with small groups that find it easier to coordinate, we can add entrants—who are aware of the group's history—to create efficiently coordinated large groups. This represents the first experimental demonstration of large groups tacitly coordinated at high levels of efficiency.

Suggested Citation

  • Roberto A. Weber, 2006. "Managing Growth to Achieve Efficient Coordination in Large Groups," American Economic Review, American Economic Association, vol. 96(1), pages 114-126, March.
  • Handle: RePEc:aea:aecrev:v:96:y:2006:i:1:p:114-126
    Note: DOI: 10.1257/000282806776157588
    as

    Download full text from publisher

    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/000282806776157588
    Download Restriction: no

    File URL: http://www.aeaweb.org/aer/data/mar06_data_20020652.zip
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    ---><---

    References listed on IDEAS

    as
    1. Bornstein, Gary & Gneezy, Uri & Nagel, Rosmarie, 2002. "The effect of intergroup competition on group coordination: an experimental study," Games and Economic Behavior, Elsevier, vol. 41(1), pages 1-25, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giovanna Devetag, 2000. "Transfer, Focality and Coordination: Some Experimental Results," LEM Papers Series 2000/02, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Mathieu Lefebvre & Lucie Martin-Bonnel de Longchamp, 2020. "Knowledge acquisition or incentive to foster coordination ? A real-effort weak-link experiment with craftsmen," Working Papers of BETA 2020-09, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Peter Kuhn & Marie-Claire Villeval, 2011. "Do Women Prefer a Co-operative Work Environment?," Working Papers 1127, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    4. Giovanna Devetag & Andreas Ortmann, 2007. "When and why? A critical survey on coordination failure in the laboratory," Experimental Economics, Springer;Economic Science Association, vol. 10(3), pages 331-344, September.
    5. Julie Beugnot & Zeynep Gürgüç & Frederik Roose Øvlisen & Michael M. W. Roos, 2012. "Coordination failure caused by sunspots," Economics Bulletin, AccessEcon, vol. 32(4), pages 2860-2869.
    6. Chesney, Thomas & Chuah, Swee-Hoon & Hoffmann, Robert, 2009. "Virtual world experimentation: An exploratory study," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 618-635, October.
    7. Rineke Verbrugge & Ben Meijering & Stefan Wierda & Hedderik van Rijn & Niels Taatgen, 2018. "Stepwise training supports strategic second-order theory of mind in turn-taking games," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 13(1), pages 79-98, January.
    8. Ockenfels, Axel & Werner, Peter, 2014. "Beliefs and ingroup favoritism," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 453-462.
    9. Kuhfuss, Laure & Préget, Raphaële & Thoyer, Sophie & de Vries, Frans P. & Hanley, Nick, 2022. "Enhancing spatial coordination in payment for ecosystem services schemes with non-pecuniary preferences," Ecological Economics, Elsevier, vol. 192(C).
    10. Charness, Gary & Jackson, Matthew O., 2007. "Group play in games and the role of consent in network formation," Journal of Economic Theory, Elsevier, vol. 136(1), pages 417-445, September.
    11. Giovanna Devetag, 2000. "Coordination in "Critical Mass" Games: An Experimental Study," LEM Papers Series 2000/03, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    12. Chambers, Paul E. & Glenn Dutcher, E. & Mark Isaac, R., 2018. "Improving Environmental Quality Through Aid: An Experimental Analysis of Aid Structures With Heterogeneous Agents," Ecological Economics, Elsevier, vol. 146(C), pages 435-446.
    13. Francesco Feri & Bernd Irlenbusch & Matthias Sutter, 2010. "Efficiency Gains from Team-Based Coordination—Large-Scale Experimental Evidence," American Economic Review, American Economic Association, vol. 100(4), pages 1892-1912, September.
    14. Ke, Changxia & Konrad, Kai A. & Morath, Florian, 2013. "Brothers in arms – An experiment on the alliance puzzle," Games and Economic Behavior, Elsevier, vol. 77(1), pages 61-76.
    15. Fehr, Dietmar, 2017. "Costly communication and learning from failure in organizational coordination," European Economic Review, Elsevier, vol. 93(C), pages 106-122.
    16. Arno Riedl & Ingrid M. T. Rohde & Martin Strobel, 2016. "Efficient Coordination in Weakest-Link Games," Review of Economic Studies, Oxford University Press, vol. 83(2), pages 737-767.
    17. James Andreoni & Laura Gee, 2015. "Gunning for efficiency with third party enforcement in threshold public goods," Experimental Economics, Springer;Economic Science Association, vol. 18(1), pages 154-171, March.
    18. Luca Corazzini & Christopher Cotton & Paola Valbonesi, 2013. "Too many charities? Insight from an experiment with multiple public goods and contribution thresholds," "Marco Fanno" Working Papers 0171, Dipartimento di Scienze Economiche "Marco Fanno".
    19. John Hamman & Scott Rick & Roberto Weber, 2007. "Solving coordination failure with “all-or-none” group-level incentives," Experimental Economics, Springer;Economic Science Association, vol. 10(3), pages 285-303, September.
    20. Ivanova-Stenzel, Radosveta & Kübler, Dorothea, 2011. "Gender differences in team work and team competition," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 797-808.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:96:y:2006:i:1:p:114-126. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.