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Decentralized Organizational Learning: An Experimental Investigation

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  • Andreas Blume
  • John Duffy
  • April M. Franco

Abstract

We experimentally study decentralized organizational learning. Our objective is to understand how learning members of an organization cope with the confounding effects of the simultaneous learning of others. We test the predictions of a stylized, rational agent model of organizational learning that provides sharp predictions as to how learning members of an organization might cope with the simultaneous learning of others as a function of fundamental variables, e.g., firm size and the discount factor. While the problem of learning while others are learning is quite difficult, we find support for the comparative static predictions of the model's unique symmetric equilibrium. (JEL C72, D23, D83)

Suggested Citation

  • Andreas Blume & John Duffy & April M. Franco, 2009. "Decentralized Organizational Learning: An Experimental Investigation," American Economic Review, American Economic Association, vol. 99(4), pages 1178-1205, September.
  • Handle: RePEc:aea:aecrev:v:99:y:2009:i:4:p:1178-1205 Note: DOI: 10.1257/aer.99.4.1178
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    Cited by:

    1. Peter H. Kriss & Roberto Weber, 2013. "Organizational formation and change: lessons from economic laboratory experiments," Chapters,in: Handbook of Economic Organization, chapter 14 Edward Elgar Publishing.
    2. Fehr, Dietmar, 2017. "Costly communication and learning from failure in organizational coordination," European Economic Review, Elsevier, vol. 93(C), pages 106-122.
    3. Guillaume Fréchette, 2012. "Session-effects in the laboratory," Experimental Economics, Springer;Economic Science Association, pages 485-498.
    4. Andonie, Costel & Kuzmics, Christoph, 2012. "Pre-election polls as strategic coordination devices," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 681-700.
    5. Chatterjee, Sidharta, 2015. "Teleological Dynamics of Organizational Performance: From Process to Practice and Performance," MPRA Paper 68530, University Library of Munich, Germany.
    6. Kuzmics, Christoph & Palfrey, Thomas & Rogers, Brian W., 2014. "Symmetric play in repeated allocation games," Journal of Economic Theory, Elsevier, vol. 154(C), pages 25-67.
    7. repec:pit:wpaper:492 is not listed on IDEAS

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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